Surging CNP Fraud in 2013 Leads to Next Generation Solutions in U.K.
Jan. 3, 2013
With more high quality data available to thieves than ever before, fraud—especially in card-not-present environments—is set to surge in the U.K. in 2013, according to British consultancy UK Fraud. The company also expects mass data breaches to continue in the new year, resulting in even more attention paid to PCI DSS issues and increasing suspicion of the security of cloud-based payment solutions. Growth in CNP fraud will result in more sophisticated products for merchants and service providers in the CNP space.
“Solutions will be based around systems for acquirers, online merchants and PSPs, who are regularly the victims of CNP fraud—where fraud is growing fast in line with the growth in Internet-based payments,” U.K. Fraud said in a statement. “Increasingly, solutions will move to better and newer generations of screening, scoring and risk based monitoring, such as those based upon Bayesian-based fraud detection systems. These will start to pose a real challenge to older systems based on so-called neural networks.”