“EMV is becoming the norm in the United States, and fraud responsibility is shifting to the merchants who are not prepared. As a merchant in the card-not-present arena, it’s highly likely that you’ll be next in terms of fraud.” – Steve Casco, CEO of CardNotPresent.com, on the importance of merchant accountability.
Worldpay US recently participated in a webinar with CardNotPresent.com to discuss CNP fraud following the implementation of EMV technology. The webinar discussed the available security measures, potential consequences for CNP merchants who aren’t prepared for the change and what’s next in the CNP space.
Some of the webinar’s themes included:
- Why EMV? It’s the right thing to do: Fraud has been increasing around the globe. EMV is intended to reduce fraud losses based on counterfeit and stolen PIN cards. Its cryptography allows dynamic data to be generated for each transaction, and the issuer can validate it, restricting fraud at the point of sale.
- Global Experience Post-EMV: After introducing chip cards to U.K. consumers, U.K. counterfeit fraud fell by 63 percent from 2004 to 2010. In addition, U.K. lost and stolen fraud was cut by 61 percent.
- Solutions to Reduce Risk: Tokenization and vaulting can be applied in card-present and card-not-present environments. Point-to-point encryption is also often used in conjunction with tokenization and vaulting.
- On the Horizon: When 3-D Secure, essentially an online version of chip-and-pin cards, was originally implemented, the technology resulted in cart abandonment. However, its next implementation will help protect customers from backdoor attacks to reduce fraud and result in lower interchange and fewer chargebacks.