UK businesses are being warned that the rollout of EMV (Chip and PIN card protection) in the United States is likely to prompt a major shift in credit card fraud to (Card Not Present) transactions in the UK and Europe. Monica Eaton-Cardone discusses how to combat CNP fraud and recommends some simple steps that every company can follow to increase risk protectionwhilst still enhancing customer satisfaction.
2004 was the year that EMV technology was introduced to the public as chip and PIN, piloting in a transformation in transaction technology that still affects retailing today.
While EMV put a considerable dent in the rates of lost or stolen and counterfeit card fraud, its adoption in the UK wasn’t the total 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, they started exploiting the spectacular rise of ecommerce with an equally booming card-not-present (CNP) crime wave that sidesteps many of the security benefits of EMV. This pattern was repeated when France subsequently adopted EMV, with CNP fraud increasing by around 20% between 2007 and 2011.
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