Card-not-present (CNP) fraud, including online and mobile attacks, has grown by 20 percent from Q1 to Q2 2015 and during the same time, incidences of account takeover (ATO) fraud increased 280 percent. Representing more than 50 percent of total claims, counterfeit card fraud is still the biggest concern for those that issue debit cards.
According to the Debit Fraud Benchmark Study from Auriemma Consulting Group (ACG) of New York, EMV migration is making these two types of fraud worse. Elsewhere in the world, converting to EMV ends up with fraudsters turning to alternative methods of attack such as online channels, where it's simpler to devise stolen payment card information.
“The American market has had the benefit of 14+ years of e-commerce risk technology enhancements that did not exist when Europe made the transition. Along with this the US has been in the unique position having to absorb the effects of EMV being implemented worldwide,” comments Ryan Wilk, director at NuData Security.
Fraudsters will also go after personal data to commit ATO fraud. Issuers are investing in CNP fraud mitigation technologies and are on the lookout for growing check, deposit and wire transfer schemes.
“Financial institutions are making significant investments to shore up their counter-measures and mitigate fraud attacks,” says Ira Goldman, director of ACG's Card Fraud Control Roundtable. “These investments should be ongoing as the potential of new threats are identified. Staying a step ahead of fraudsters is imperative for fraud control strategists.”