The tools and services available to merchants around the world that accept card-not-present transactions have proliferated significantly in recent years as they try to keep up with fraud in their CNP channels. In the next 12 months, however, the two that will be implemented the most are 3D Secure and email address validation, according to a new white paper from the U.S. Payments Forum. While legacy authentication methods like CVN and AVS are still the ones employed by most merchants globally (87 percent and 66 percent respectively), the white paper noted that 18 percent of merchants plan on adding 3DS and 12 percent plan on adding email address verification over the next year.
In addition to the tools merchants are using, the paper also looked at the effect EMV and other factors have had on fraud rates in several different regions, what countries use manual reviews the most and what legislation is pending in the U.S. and internationally that could help contain CNP fraud. The paper makes several familiar recommendations to CNP merchants including layering antifraud technologies and fostering more cooperation between industry stakeholders.
“While many attribute the rise in CNP fraud seen in other countries to the implementation of EMV chip technology, there are other factors (e.g., the rapid growth of online sales and the fact that fraud prevention tools have not been fully adopted and implemented by all stakeholders) that have contributed to the increase,” said Randy Vanderhoof, director of the U.S. Payments Forum. “This white paper looks at the experiences and lessons learned from other countries that have a similar landscape to the U.S. to provide a foundation for the U.S. payments industry to build out layered, effective and systematic mitigation strategies to reduce CNP fraud.”
- Practical Considerations of Various Authentication Methods
- Policy Review: How are Governments Affecting CNP Businesses This Year?
- Managing a Successful Fraud Team