I was an EMV skeptic but was wrong. US issuers danced around the conversion issue for two decades and MasterCard and Visa only mandated the issue when the interoperability issues began to impact network interoperability. Now it all makes sense.
Nice Visa infographic illustrating the EMV progress, indicating that counterfeit fraud dollars dropped 70% between September 2017 and December 2015. Indications are that 273 million debit and 209 million credit cards are in circulation as of December 2017.
The “Visa Chip Card Update” revealed a 70 percent drop in counterfeit dollars over a two-year period among U.S. merchants who have completed the chip upgrade.
Sometimes referred to as Europay, MasterCard and Visa (EMV) technology, the chip-and-PIN design was first suggested about seven years ago as a way to improve credit card fraud
Now, onto the next big problem.
While the statistics from Visa are encouraging, they don’t mean that threats to financial systems and consumers have gone away. Forter’s “Fraud Attack Index” found that account takeover attacks against online payment accounts increased by 131 percent between 2015 and 2016.
But even if EMV adoption boosts credit card fraud protection, 85 percent of merchants are still concerned about card-not-present (CNP) attacks, according to Vesta’s “2017 Financial Impact of Fraud Study.”
Credit card fraud shifts like sands in the desert. Just as one issue gets fixed, fraudsters look for the weakest link. Next big issue to tackle: Card Not Present Fraud.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
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