Report: Post-EMV ‘CNP Fraud Cannot be Underestimated in Growth or Expense’
Nov. 6, 2014
There have been no shortage of warnings about the potential for card-not-present fraud to spike as the transition to EMV takes place in the U.S. The most recent alarm has been raised in a report by Javelin Strategy & Research, which took a look at the experience of the U.K. as an analog of what may happen stateside after the liability shift in October 2015. The report again warns merchants not to ignore what is becoming the most vulnerable channel.
“EMV is not a holistic solution to card fraud and therefore should be implemented in parallel with solutions that are designed to deal with where fraud is growing the most – online,” said Nick Holland, Senior Payment Analyst at Javelin Strategy & Research. “CNP fraud cannot be underestimated in growth or expense.”
Javelin predicts CNP fraud in the U.S. to be nearly four times greater than fraud at the POS by 2018, simply because of the explosive growth expected in the number of e-commerce transactions.