There is a bit of a perfect storm brewing creating a holiday season that will see even more card fraud, according to iovation and reported in Claims Journal. Fraud attacks are focused on card not present (CNP) transactions and more consumers are conducting their shopping online:
Leading into last year’s holiday shopping season, physical retailers began adopting EMV cards to protect their card-present transactions. A by-product of this switch is that fraudsters are adapting their techniques from card-present fraud to online schemes since chip technology makes the cards nearly impossible to counterfeit,” said Scott Waddell, CTO at iovation. “Now, more than a year later, the bad guys have had plenty of time to adapt their tactics and are in full swing with their online assault.”
If there is good news in any of this, it might be that more CNP transactions are going mobile. Mobile transactions often have greater protections installed including password protection (at least to the device) and tokenizatio
The company also predicts that 52 percent of retail online transactions from Black Friday to Cyber Monday will be conducted using mobile phones and tablets this year. This continues an ongoing mobile retail transaction increase over the holidays and year-to-year. Specifically, iovation data shows:
The annual growth in mobile retail transactions:
- 44 percent of all online transactions were made from a mobile device in 2015.
- 32 percent of all online transactions were made from a mobile device in 2014.
- 20 percent of all online transactions were made from a mobile device in 2013
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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