Visa study reveals that six out of every ten individuals fail to report instances of payment fraud
In a recent survey conducted by Visa across Germany, it was revealed that only 60% of consumers who have experienced payment fraud have reported the incident, despite its significant importance in fraud prevention[1]. This is in stark contrast to the 90% of respondents who have never been affected by fraud, but claim they would report it if it happened[1].
The survey identified several key reasons for underreporting, including complexity and uncertainty around reporting channels, overconfidence in personal fraud detection abilities, and potential stigma or lack of awareness about the importance of reporting.
Many victims may be uncertain about the correct reporting procedures or find the process too complicated, leading them to avoid reporting altogether. This issue is not unique to Germany, as 68% of New Zealanders did not report scams due to uncertainty about where and how to report[2].
Additionally, 59% of Germans feel relatively confident in their ability to recognize fraudulent emails or websites, which might lead to a false sense of security and reduce the perceived urgency to report incidents[1]. This confidence remains unchanged from the previous year, despite a reported rise in fraud attempts over the past 12 months[1].
There may also be stigma or embarrassment associated with falling victim to fraud, or victims may not realize the broader impact of their reporting on systemic fraud prevention. The survey did not explicitly ask about stigma, but it is a known factor in underreporting of fraud globally.
Tobias Czekalla, Head of Germany at Visa, emphasizes that “reporting payment fraud is just as important for combating fraud as reporting it to the bank,” highlighting that non-reporting weakens the overall defense against increasingly sophisticated scams[1]. Visa notes that, despite the rise in fraud attempts, the actual fraud rate for Visa payments has decreased in recent years, partly due to improved security measures, but underreporting remains a critical gap[1].
The survey also revealed that regular updates on fraud forms (60%) and guidance on suspicious account activities or debits (58%) are particularly desired by respondents. The skepticism towards QR code payments is consistent with last year's findings (37%). Almost everyone (92%) expects their bank to inform them about payment security and current fraud methods.
Confidence in mobile payments has grown since 2023, up from 37%. Four out of five Germans (42%) have experienced the grandparent scam or shock news, and 37% have encountered fake shops. The expectation for banks to provide information about payment security is highest among those over 60 (97%).
Tobias Czekalla, CEO of Visa Germany, stated that they have succeeded in further reducing the fraud rate for Visa payments in recent years. Addressing the barriers to reporting is crucial for improving fraud prevention and consumer protection[1].
[1] Visa, (2025). Visa survey on payment security in Germany, May 2025. [2] Consumer Protection Agency, (2024). New Zealanders' attitudes towards scams and fraud, March 2024.
The newsletter could include information on the importance of reporting payment fraud in the finance industry, addressing the concerns about complex reporting channels and potential stigma associated with fraud. This awareness campaign could help ensure that more incidents are reported, thereby enhancing technology-driven fraud prevention measures.
In light of the survey findings, the finance and technology sectors could collaborate to simplify reporting procedures for consumers, making it easier for victims to report fraud and contribute to overall industry security.
