CNP Merchants Could Be at Risk in Canada as EMV Decreases Traditional Fraud

Sept. 20, 2010

According to the Criminal Intelligence Service in Canada (CISC), payment card fraud in the country decreased from $512.2 million (U.S.$496.9 million) in 2008 to $500.7 million (U.S.$485.7 million) last year. The CISC attributes the stall in fraud to the introduction of chip-and-PIN credit cards (debit card fraud in Canada continued to rise, which the CISC said could be due to Interac—the Canadian debit scheme—having been slower to roll out EMV than credit card networks). The agency predicts, however, that whatever gains the Canadian payment card industry makes in regard to payment card fraud overall, criminals will look for other avenues to strike. “This reduction will be offset by a displacement of payment card fraud using Canadian card data to locations that have not implemented chip-and-PIN,” the reports said, “such as the U.S., and to card-not-present fraud, which is not impacted by the new technology.”