As the U.S. moves to EMV chip technology to significantly curb counterfeit card fraud at the retail point of sale (POS), criminals may turn their attention to committing card-not-present (CNP) fraud via online or telephone channels.
Methods for securely authenticating CNP transactions and preventing fraud is the topic of a new white paper from the Smart Card Alliance Payments Council, "Card-Not-Present Fraud: A Primer on Trends and Transaction Authentication Processes."
"Criminals will often go after the weakest link in the chain. Many countries that have implemented EMV chip payments have reported fraudsters shifting their attention away from the physical POS to e-commerce channels where it's much easier to make fraudulent purchases," said Randy Vanderhoof, executive director of the Smart Card Alliance. "It's important that the U.S. payments industry be proactive and evaluate ways to strengthen the security of CNP channels at the same time as we migrate to higher levels of security in-store with EMV chip technology. This white paper is a good primer for that evaluation."
The white paper provides:
An overview of the predicted growth of CNP transactions due to increasing popularity of e-commerce transactions and the migration of EMV chip payments
Examples of authentication methods that provide a channel through which the cardholder can be verified, adding additional security for CNP transactions
A discussion on frequency and types of card fraud, including first-party fraud, CNP fraud, counterfeit fraud, lost and stolen card fraud, mail and non-receipt fraud and identity theft
An analysis of CNP fraud trends in U.K., France and Australia at different stages of EMV implementation
Read the full paper:
Download the document now 341.8 kb (PDF File)