As EMV implementation in the U.S. continues, counterfeit fraud is nosediving—as expected. The most recent data from Visa indicated that 62 percent of its payment cards in circulation (449 million) carry the EMV chip and that 2.3 million merchant locations in the U.S. are chip-enabled representing 50 percent of the country’s storefronts. At the same time, for merchants who have installed EMV-compliant POS systems, the amount of revenue lost to counterfeit fraud has dropped 58 percent on a year-over-year basis.
While causation is difficult to prove, many feel that the difficulty EMV presents to counterfeit fraud is driving criminals online to the relatively easier pickings. EMV likely has had a significant impact on the rise in CNP fraud, as has the overall rise in e-commerce transactions and the increasing availability of stolen personal and payment data that can be used to commit fraud online.
Coming up on two years since the liability shift that marked the official start of the EMV era in the U.S., only half of all merchant locations are equipped to accept chip cards. E-commerce transactions will continue to climb, EMV will continue to roll out, hackers will continue to steal prized personal information and merchants must continue to protect their revenue against the fraud that will result from all three.