Shiny new technology tools utilizing big data are making it easier than ever before to shop online. For consumers that means more relevant reward programs and a proliferation of the 1-click buy button. But before you click that buy button be forewarned, fraudsters are out and about looking for the weakest link in the purchasing process. That fraudster just may be lurking behind the buy button you are about to click.
Why now you ask? 2015 marks a turning point in the payments industry that will impact consumers, merchants, and financial institutions alike. This year consumers in the US received new EMV chip credit and debit cards, and merchants are changing out terminals at the point-of-sale (POS) in order to prevent payment cards from being cloned and account numbers from being compromised during a purchase transaction in physical stores. Those efforts mean fraudsters will struggle steeling money when the card is present during a purchase, pushing the fraudsters toward other entry points into the system such as when the card is not present (CNP). Online merchant websites that promote CNP transactions are now under attack. Even with all the new and fancy technology tools, online merchants remain exposed and are now primary targets for fraud events. Payment industry analysts predict that CNP fraud will spike to three times the current levels topping US $11 billion by 2018, underscoring the risk.
While different merchants are starting to deploy new detection solutions, each merchant has its own set of standards and means to solve the problem. As such consumers can’t be sure which merchants are safe and protecting their payment card account numbers. Luckily, help is on the way. New tools that focus on prevention are coming on the market and FIs would be wise to adopt them.
We at Tender Armor with our CvvPlus solution are here to help. Contact us now to learn how we can protect cardholders from CNP fraud and help get the fox out of the hen-house.