Paper: What to Do about CNP Fraud in an EMV World

Feb. 6, 2014

Paper: What to Do about CNP Fraud in an EMV World Heightened attention to EMV in the U.S. in the wake of security breaches at Target and Neiman Marcus have ignored the reality that, upon its implementation, much of the fraud directed at the POS will move to card-not-present channels. A new white paper looks from the Smart Card Alliance—a major proponent of EMV in the U.S.—takes a look at what has proved to be an inevitable shift in other countries that have migrated to EMV technology.

The paper gives an overview of CNP fraud in light of the EMV move and e-commerce and mobile-commerce growth, the experience of specific countries regarding CNP fraud after EMV was introduced, best practices for authenticating identities online and over the phone, and some of the ways the industry can tackle the expected surge in CNP fraud (e.g., CAP/DPA, 3D Secure and tokenization).

“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.”