US sees repercussions from EMV as criminals switch tactics
02 February 2016 | 10834 views | 0
Incidents of new account fraud in the US doubled last year, as criminals switched tactics in response to the introduction of EMV chip cards.
The 2016 Identity Fraud Study released by Javelin Strategy & Research, revealed that the number of identity fraud victims increased by three percent (13.1 million consumers) in the US last year, but that the amount stolen decreased by six percent to $15 billion.
The number of identity fraud victims was at its second highest level in six years, but the amount stolen was at its lowest point in the past six years. Nonetheless, $112 billion in total has been lost to ID fraudsters during that timeframe.
In 2015, the US began its migration to EMV, in a bid to crack down on in-person fraud and the profitability of counterfeit card operations. Fraudsters have reacted by moving away from existing card fraud, says Javelin, instead driving a 113% increase in incidence of new account fraud, which now accounts for 20% of all fraud losses.
Al Pascual, senior vice president, research director and head of fraud & security, Javelin, comments: “Fraud is evolving at a frantic pace although the amount of fraud has been relatively flat over the past four years. This just shows that when the industry cracks down on one type of fraud, criminals quickly shift their attack vector and area of operation.”