BizReport

RSS feed Get our RSS feed

News by Topic




BizReport : Ecommerce archives : March 14, 2017


Expert: Why the EMV hasn't stopped credit card fraud

With the implementation of the EMV change last year, retailers were supposed to see significantly less credit card fraud. But, according to some reports, credit card fraud continues. One expert explains why.

by Kristina Knight

Kristina: The EMV was supposed to curb credit card fraud. Some research show online fraud has risen. Why?

Michael Lynch, Chief Strategy Officer, InAuth: Implementation of the EMV chip dramatically slowed fraud in one channel, but the fraudsters adapted and found new ways to commit fraud using stolen credit-card numbers and passwords, or by opening new accounts with false credentials to use in making online payments for purchases. In countries where the chip and pin card was first launched, such as across the EU, Canada, and Australia for example, "card present" fraud dropped, while card not present (CNP) fraud and other types of fraud have escalated. The US has already started to experience the same thing and should more proactively address this. The Global Fraud Attack Index TM, provided in collaboration by Forter and PYMNTS.com, shows since the EMV cards were implemented in the fall of 2015 in the US, e-commerce fraud committed against U.S. merchants jumped 42% as of Q4 2016.

Kristina: How can retailers protect themselves?

Michael: Organizations will need to make an investment in next-generation technology that will better protect their customers, as well as their organizations from risk and fraud. Retailers need advanced device identification, risk detection, and analysis capabilities to help limit risk, remove friction, and reduce fraud within their digital channels. Specifically, retailers need to know and understand the trustworthiness of every device interacting within their digital channels - mobile app, mobile web, and desktop. Cross referencing this information with customer behavior data creates valuable insight into whether you are dealing with the true customer. Retailers also need to defend against constantly emerging threats such as Bot attacks, malware, spoofing, velocity attacks, etc., and protect valuable customer information from account takeover tactics used by fraudsters by advanced risk detection, multifactor authentication, biometric authentication and encryption techniques.

With safer digital transactions, merchants are better protected and better positioned to capture new revenue opportunities and compete more effectively in an "always-on" world.

More from Michael and InAuth tomorrow, including steps shoppers can take to protect from credit card fraud.






Tags: credit card fraud, digital fraud, ecommerce, EMV changeover, InAuth








Subscribe to BizReport







http://www.bizreport.com/2017/03/expert-why-the-emv-hasnt-stopped-credit-card-fraud.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.