By Monica Eaton-Cardone, CIO and Co-Founder of Global Risk Technologies™
Businesses are being warned that the rollout of chip and PIN card protection (EMV) in the United States is likely to prompt a major shift in credit card fraud to card not present (CNP) transactions across the UK and Europe. Here I will discuss how to combat a new wave of CNP fraud and recommends some simple steps business can implement improve risk protection, whilst at the same time enhancing customer satisfaction.
2004 was the year that EMV technology was first introduced to the public as chip and PIN, piloting in a period of transformation in transaction technology that’s effects are still blighting businesses today.
While EMV put a considerable dent in the rates of lost or stolen cards, and counterfeit card fraud, its adoption in the UK wasn’t the fraud cure that some industry insiders had hoped. Criminals simply looked elsewhere for an easier way to commit fraud and since UK-issued cards retained their mag strip to ensure backward compatibility, captured card data was used to commit fraud in countries that had yet to migrate to chip and PIN. A few years later, fraudsters started exploiting the spectacular rise of ecommerce with an equally booming CNP crime wave that sidesteps many of the security benefits of EMV.
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