SEVERE WEATHER ALERT: A Perfect Storm of CNP Fraud Is Brewing
It’s October and the official EMV deadline is here -- merchants and banks that are not able to accept the EMV chip technology that reduces card-present fraud are now liable for fraud and must assume the costs.
EMV is anticipated to decrease fraud for in person transactions, but its increasing prevalence is driving fraudsters to adjust their tactics to focus on card-not-present transactions, where the EMV chip is almost irrelevant. Fraud has spiked dramatically in every market that EMV has been implemented. Now that the deadline has occurred for the US as one of the largest e-commerce economies in the world, we’ll start to see the global effect of fraudsters’ movement to online.
While the world isn’t going to end today or fall into complete disarray immediately, this deadline does mark one of three elements converging for the perfect storm of fraud. Along with the shift to EMV in the US market, recent large-scale data breaches combined with the increasing use of new mobile payment solutions make it easier for thieves to obtain and use stolen data, leaving merchants and consumers extremely vulnerable to fraud.
These recent trends are creating an environment that makes it easier for fraudsters and more difficult for merchants. The lack of preparation of businesses who still have yet to transition EMV technology and consumers who are still waiting for the chip-enabled credit cards have added another layer of chaos that fraudsters can exploit. But, it is possible for businesses to weather the storm and protect themselves –and their customers – from fraud.
Check out Kount’s new eBook, “The Perfect Storm of Fraud” to learn more about this fraud maelstrom and tips for merchants and consumers to avoid getting caught in the storm.