Report: CNP Fraud Tops List of Global Fraud Concerns
July 2, 2015
For the third year in a row, card-not-present fraud topped a list of concerns around global fraud expressed by payments and card industry executives, according to a new report from payments technology provider Compass Plus. In the survey, which polled nearly 200 payments and banking experts around the world, more than 28 percent of respondents named card-not-present fraud as the most pressing fraud problem, followed by card skimming (26.6 percent) and Internet banking hacking (15.6 percent).
More generally, those polled in the survey named fraud as the biggest challenge for the fourth year in a row, outpacing mobile payments, the rise of alternative payment providers and EMV. Not surprisingly, U.S. respondents identified EMV more often (21 percent) as their biggest challenge, noting the looming liability-shift deadline and the costs associated with producing and implementing EMV-compatible cards and POS systems.
“Whilst there are always new challenges in the industry, everything circles back to fraud,” said Maria Nottingham, managing director at U.K.-based Compass Plus. “Even other issues such as alternative payments and EMV in the U.S. revolve around security. The fact that fraud has been named as the biggest challenge facing the industry for the fourth consecutive year highlights it as a serious issue. The industry is constantly evolving, as are fraudsters, so financial institutions have to continuously ensure their approach to fraud prevention is layered and sufficient to take care of both internal and external threats.”