Global fraud rises again

Figures from this month’s Nilson Report show that global card fraud figures reached $21.84bn in 2015 and is predicted to keep rising. These fraud losses come from a number of sources including counterfeit card fraud, CNP fraud, “friendly” fraud and fraudulent applications.

Ecommerce continues to boom across the world at unforeseen rate. WorldPay recently predicted that global ecommerce figures would hit $2.4tn by 2019. It’s an incredible prediction but if recent history is anything to go by, that figure will no doubt be higher by 2019.

There does then, seem to be a dichotomy in ecommerce. Fraud is growing at a huge rate but it is not impacting on the growth of ecommerce. Consumers are still flocking to laptops and mobile to shop, transact and live their financial lives. It would seem that fraud is not having an impact on the popularity of ecommerce. At least, not yet.

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EMV and the new avenues of fraud

It has nearly been a year since the 1 October 2015 US liability shift deadline for US credit card companies and merchants to switch to EMV cards. Despite concerns about costs and the challenges of roll out on such a huge scale. EMV adoption has rapidly increased. MasterCard has announced that 80% of its credit cards now have chips, while it has 1.7 million chip-active merchant locations on its network.[1]

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EMVCo Growth Report is Good News for Global Security

Global technical body EMVCo recently reported that by the end of 2015, 4.8million EMV payment cards were in circulation globally.[1] This is very good news for consumer data security. With the EMV protocol, card data is stored on an integrated circuit rather than on a magnetic strip, making it extremely difficult to clone. A key component of EMV’s success is its simplicity; where chip & PIN is in place, the user only has to remember a short 4-digit PIN and their payment card to conduct a secure transaction.

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The Pivotal Role of Emerging Technology in Fighting Fraud and Improving the Customer Journey

We recently shared our latest whitepaper looking at the role of PIN as an identification & verification (ID&V) tool.

ID&V plays an important role in fraud prevention, customer data protection and regulatory compliance. When a consumer is using online banking, or wants to register their card with a merchant for the first time, they have to authenticate themselves and verify their card.

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The Rise and Rise of PIN: A Decade of Acceptance

It is now 10 years since Chip and PIN became the gold standard of authentication for face to face transactions. Chip & PIN, refers to cards which use the EMV protocol. Payment data is stored on an integrated circuit (the chip) rather than the traditional magnetic strips, making the cards near impossible to clone. Its ease of use and proven effectiveness in combating card fraud has made it central component of our payments experience.

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Chip & Choice: The US EMV Story So Far

The EMV liability shift has been in effect in the United States for just over a month since its deadline of 1st October. This shift saw the country make a more concerted move towards the same in-store payment authentication method we are familiar with in Europe, and most of the world.

One trend is already clear, every player – except those with a vested interest – was wishing for something else, as is evidenced by its far from impressive adoption.

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GUEST BLOG: None as blind as those that can’t see. If you can’t see it then at least smell the “coffee”…

By David Poole, Business Developer Director at MYPINPAD.

I was fascinated to read the latest fraud figures as reported in The Nilson Report this week.  Worldwide card fraud is up 15% to $16b in 2014. Read that again – $16b that could potentially solve some austerity problems not to mention poverty.  I dare say many organisations would love to be reporting >15% top line revenue growth.

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The PIN Is Mightier Than the Pen

US merchants have until this October to convert their payment terminals to those capable of EMV (or chip) transactions. This move has been long awaited by banks and payments companies worldwide as it is hoped that it will – among other things – put an end to the US being the primary offender related to fraud from cloned or stolen cards.

The much anticipated liability shift will be a game-changer, particularly for merchants, who will be liable for any card-present fraud committed in their store if they do not have EMV capable card acceptance technology.

The payments industry has been awash with predictions about what this will mean for card-present fraud (it will drop), card-not-present fraud (it will rise) and how American consumers will adapt to this new way of performing transaction. Read more