Online fraud has increased significantly in the US since the switch to EMV chips

Attempted fraud with stolen payment information has increased significantly in the US since merchants and card issuers switched to cards with EMV chips rather than magnetic strips, according to a report from ACI Worldwide cited by Reuters. Annual fraud costs to US retailers rose 38% to $32 billion in 2014, according to BI Intelligence estimates based on data from Lexis Nexis.

In 2015, one out of every 86 card-not-present transactions were fraud attempts compared to one out of every 114 in 2014.

This is especially prevalent as more merchants offer buy-online, pick-up in-store features. Fraudulent shoppers are using stolen payment information online — where card information is simply entered — and picking items up in-store where the merchant does not require a second run of the credit card.

Online fraud is expected to especially increase this holiday season, with this type of in-store pickup scam climbing 28%. This is particularly important for omnichannel retailers that do not run secondary security checks for customers that shop online and in-store. As merchants do their best to offer multiple channels for holiday shoppers, it is important to implement new security guidelines — especially as order volume increases and employees become busier.

Froud Chard

Interested in getting in-depth analysis on this topic and others like it? Here are a few ways to access our exclusive research:

  1. Purchase & download comprehensive research reports from our research store. >> Purchase & Download Reports Now
  2. Try our INSIDER Newsletters risk-free. Every morning the BI Intelligence team will deliver you a daily newsletter covering everything you need to know in your digital industry. >> Start Now Risk-Free
  3. Subscribe to an All-Access pass to BI Intelligence and gain immediate access to ALL of our expertly researched reports. As an added bonus, you’ll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. >> Learn More Now

Source: http://www.businessinsider.com/online-fraud-has-increased-significantly-in-the-us-since-the-switch-to-emv-chips-2015-11

Leave a Reply

Your email address will not be published. Required fields are marked *