The results are in – the prediction for the payments industry is less point of sale (POS) fraud, and more card-not-present (CNP) fraud.

Let’s review.

In a recent Transaction Trends article, a new report from Javelin Strategy and Research points the finger at CNP fraud, and takes the heat off POS transactions, which are protected mostly by the new EMV migration.

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The fraud report states that CNP fraud could jump to $19 billion in the next 3 year, a huge increase from last year’s $10 billion in fraud.

EMV chip cards are hard to counterfeit, and the tokenization and encryption that is currently being used in modern terminals and payment methods prevents fraudsters from intercepting the sensitive data.

However, CNP transactions don’t have the same protection. So, it makes sense that some fraudsters who were focusing on the POS transactions to make their illegal dollars will now switch their focus to the online world, where everyone’s identity is hidden.

“To keep such fraud under control, banks and card issuers “will need to improve authentication across both the mobile and call-center channels, and they should be making those investments now before it is too late,” says a representative from Javelin.

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