Card-Not-Present FraudIs 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 Therewere databreaches 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 someexperts 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