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Do newspaper articles on card fraud affect debit card usage?

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  • Anneke Kosse

Abstract

This paper investigates the impact of newspaper articles about skimming fraud on debit card usage in the Netherlands, using daily transaction data and daily newspaper announcements from January 1st 2005 to December 31st 2008. Key finding is that articles about skimming fraud significantly affect same day debit card usage. The direction and strength of the media effects strongly depend on the specific characteristics of the publications, such as type of fraud addressed and their position in the newspaper, but above all by the frequency with which they come out. The effects, however, are economically small compared to other factors, such as calendar and holiday effects, and do not sustain or accumulate in the long run. Yet, some first cost calculations demonstrate that the impact of media attention on total retail payments efficiency is not to be underestimated.

Suggested Citation

  • Anneke Kosse, 2012. "Do newspaper articles on card fraud affect debit card usage?," DNB Working Papers 339, Netherlands Central Bank, Research Department.
  • Handle: RePEc:dnb:dnbwpp:339
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Mikhed, Vyacheslav & Vogan, Michael, 2017. "How Data Breaches Affect Consumer Credit," Working Papers 17-6, Federal Reserve Bank of Philadelphia, revised 16 Nov 2017.
    2. repec:kap:jfsres:v:52:y:2017:i:1:d:10.1007_s10693-017-0281-6 is not listed on IDEAS
    3. Cheney, Julia S. & Hunt, Robert M. & Mikhed, Vyacheslav & Ritter, Dubravka & Vogan, Michael, 2014. "Identity theft as a teachable moment," Working Papers 14-28, Federal Reserve Bank of Philadelphia.
    4. Bruno Karoubi & Régis Chenavaz & Corina Paraschiv, 2016. "Consumers’ perceived risk and hold and use of payment instruments," Applied Economics, Taylor & Francis Journals, vol. 48(14), pages 1317-1329, March.
    5. Mikhed, Vyacheslav & Vogan, Michael, 2015. "Out of sight, out of mind: consumer reaction to news on data breaches and identity theft," Working Papers 15-42, Federal Reserve Bank of Philadelphia.
    6. Vania Silva & Esmeralda Ramalho & Carlos Vieira, 2016. "Is EMV adoption changing card payments? Evidence from the European Union," CEFAGE-UE Working Papers 2016_05, University of Evora, CEFAGE-UE (Portugal).
    7. repec:kap:jfsres:v:52:y:2017:i:1:d:10.1007_s10693-017-0270-9 is not listed on IDEAS
    8. Leo Van Hove & Farhod P. Karimov, 2016. "The role of risk in e-retailers’ adoption of payment methods: evidence for transition economies," Electronic Commerce Research, Springer, vol. 16(1), pages 27-72, March.
    9. Nicole Jonker & Mirjam Plooij & Johan Verburg, 2015. "Does a public campaign influence debit card usage? Evidence from the Netherlands," DNB Working Papers 470, Netherlands Central Bank, Research Department.
    10. Anneke Kosse, 2013. "The Safety of Cash and Debit Cards: A Study on the Perception and Behavior of Dutch Consumers," International Journal of Central Banking, International Journal of Central Banking, vol. 9(4), pages 77-98, December.
    11. Ardizzi, Guerino, 2012. "The Impact of the Microchip on the Card Frauds," MPRA Paper 41435, University Library of Munich, Germany.
    12. Greene, Claire & Stavins, Joanna, 2016. "Did the Target data breach change consumer assessments of payment card security?," Research Data Report 16-1, Federal Reserve Bank of Boston.
    13. Charles M. Kahn & José M. Liñares-Zegarra & Joanna Stavins, 2017. "Are there Social Spillovers in Consumers’ Security Assessments of Payment Instruments?," Journal of Financial Services Research, Springer;Western Finance Association, vol. 52(1), pages 5-34, October.
    14. Éva Divéki & Dániel Listár, 2012. "Better safe than sorry: views of the Hungarian public on the security of payment instruments," MNB Bulletin (discontinued), Magyar Nemzeti Bank (Central Bank of Hungary), vol. 7(3), pages 7-27, October.

    More about this item

    Keywords

    debit card; fraud; safety; payment behaviour; media; newspaper;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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