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EMVs Impact On Fraud Rates

EMV’s Impact On Fraud Rates

There has been a steady decrease in counterfeit credit card fraud in the U.S. since the introduction of EMV technology. And, according to Visa, merchants have reported a 35 percent reduction in counterfeit card fraud.

While EMV technology has helped reduce counterfeit credit card fraud, we know from the United Kingdom’s EMV migration that we can expect to see an uptick in card-not-present (CNP) fraud. Online fraud in the U.K. rose by 79 percent during the first three years of their EMV transition. “Criminals aren’t going to get honest and get new jobs,” said Julie Conroy of Aite Group. “They’re switching tactics and focusing on other areas.” As credit cards become harder and more expensive to counterfeit, criminals will start turning more and more toward CNP environments.

Even though CNP environments are easier targets, criminals are aware that the move to EMV is a slow process. While some merchant locations are equipped with EMV hardware, many are waiting in long certification queues and cannot accept a dipped card. Charles Scharf, the CEO of Visa, has said that more than 750,000 locations across the U.S. are able to process chip-based EMV transactions. And while that may sound like an impressive number, 750,000 locations represent a minority of the U.S. card-present merchant base – only 17 percent. So it’s no surprise then that many criminals have not yet changed their tactics in light of the EMV liability shift. In fact, many fraud analysts predict that criminals will continue using counterfeit magnetic stripe cards as long as they are able, meaning merchants who are not EMV certified are at a greater risk for fraud. “It’s a bit of an arms race between the good guys and bad guys and there are lots of technologies that can help with this, but those companies that don’t deploy them will be the weakest link,” Conroy said.

Merchants can protect themselves against all types of fraud by implementing layered payment security technologies. For card-present merchants, EMV, end-to-end encryption, and tokenization work together to help protect sensitive payment card data. For CNP merchants, encryption and tokenization help ensure that merchants do not store, process, or transmit that data – protecting both their customers and their brand.

Accepting EMV and employing payment security technologies like encryption and tokenization is easy. With our EMV-capable, PCI-compliant MiPoint solution, merchants get fast, secure, and convenient ways for their customers to pay – whether that’s with an EMV card or Apple Pay. So merchants not only get the industry’s latest and most secure technologies, they also get MiCamp’s world-class resources. Contact us today to find out more about MiPoint.

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