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Card Not Present fraud is Skyrocketing Infographic
Card-Not-Present Fraud
Is Skyrocketing.
Here’s Why.
E-commerce merchants are successfully making it easier than ever for customers to
complete their online transactions. But this can come at a surprising cost:
Card-not-present (CNP)
fraud rates are increasing
,
Below, we explore some of the data behind the rise in CNP fraud, so merchants can better
understand why these changes are occurring and how
they can protect themselves
.
and merchants are bearing the brunt of these losses like never before.
Good news
a
record
year
and
a
40%
increase
from
2015
,
according
to
the
Identity
Theft
Resource
Center.
With
so
much
sensitive
data
readily
available,
and
given
the
difficulty
merchants
face
when
attempt
-
ing
to
validate
a
consumer’s
identity
online,
e-com
-
merce
provides
fraudsters
with
the
perfect
oppor
-
tunity for theft.
1,093
There
were
data
breaches in
2016
Abundance
of credit card data
on the black market.
The
tighter
security
of
EMV
(chip)
cards
has
de
-
creased
the
rate
of
in-person
credit
card
fraud.
As
a
result,
fraudsters
have
migrated
to
other,
less
secure commerce channels (like online sales).
Chip cards
have limited the
opportunity for fraud in
in-person transactions.
U.S. merchants will lose
due to card-not-present fraud, and some
experts project cumulative losses will exceed
$70 billion
globally over the next five years.
$6.4 billion in 2018
Sources:
IDology
,
Juniper Research
Reasons Why:
Fraudsters
are
increasingly
making
fraudulent
pur
-
chases
online
and
returning
the
merchandise
in
a
brick-and-mortar
store,
where
identification
is
rarely
required for returns.
Increase
in in-store returns.
02
02
Sources:
IDology
,
Experian data
Reasons Why:
Growing demand
for in-store
pickups of online orders.
Customers
choosing
this
option
typically
don’t
have
to
provide
a
shipping
address,
which
makes
it
harder
for
the
merchant
to
validate
the
transac
-
tion
at
the
point
of
sale.
Additionally,
upon
pickup,
many
stores
don’t
require
customers
to
present
an
ID
or
to
re-swipe
the
credit
card
used
for
the
pur
-
chase.
This
lack
of
security
exposes
merchants
to
higher CNP fraud levels.
Identities are often
not verified
for these pickups.
a new form of fraud called “click-and-collect”
will account for a significant percentage of
card-not-present fraud losses.
Source:
Juniper Research
Reasons Why:
As
consumers
make
more
online
transactions,
merchants
must
be
even
more
aware
of
their
risk
for
CNP
fraud
and
must
take
the
neces
-
sary
steps
to
prevent
sophisticated
fraud
attacks
from
hitting
their
businesses.
When
it
comes
time
for
your
business
to
decide
on
a
fraud
prevention
solution,
it’s
important
to
understand
the
different
options
available
to
you.
To
reduce
the
rising
threat
of
CNP
fraud,
your
business
needs
more
than
simple
fraud
filters
—
it
needs
a
comprehensive
managed
services solution
.
Learn how our multilayered approach can
protect your business and help you safely
grow your online sales.
How Merchants Can Combat
Card-Not-Present Fraud
