The results are in – the prediction for the payments industry is less point of sale (POS)The time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. fraud, and more card-not-presentA merchant environment where the cardholder (and the card) is not physically present at the time of purchase. Typical card-not-present transactions take place in businesses focused on mail order/telephone order, business-to-business, and Internet-based transactions.... (CNP) fraud.
In a recent TransactionAn act between a seller and a cardholder that results in either a paper or an electronic representation of the cardholder’s promise to pay for goods or services received from the act. The action between a cardholder and a merchant that results in financial activity between the merchant and cardholder’s account.... Trends article, a new report from Javelin Strategy and Research points the finger at CNP fraud, and takes the heat off POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. 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 POSThe time and place a sale takes place. Also refers to the devices used to transmit the credit card transaction. 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.
E-commerce and m-commerce are growing significantly. To protect your business from the growing fraud, ensure that your business is handled by the experts in high riskA merchant that is considered a high risk based upon the credit, product, method, ticket size or volume. Examples of high risk merchants are telemarketing, adult and travel related industries.. To learn more about National Merchants Association’s high risk solutions, underwriting department, and risk monitoring programs, check out our website or call (866) 509-7199.