November 14, 2017
Chipping Away at One Cybercrime Fraud Increases Another
Posted September 8, 2015
Card-Not-Present Fraud, Which Accounts for 25 Percent of Cybercrime Fraud Losses, Expected to Grow with U.S. Adoption of Chip Cards
The Nilson Report, which provides world news and analysis of the card and mobile payment industries, found in its most recent study that globally in 2014, there was $16.31 billion in losses from all forms of payment fraud. Interestingly enough, U.S. credit and debit card issuers, acquirers and merchants suffered close to half (48.2 percent) despite the fact that only 21.4 percent of the purchases were made with U.S.-issued cards.
An article on the paypers.com highlights key areas of The Nilson Report which suggests that with the U.S. adoption of the EMV standard, card-not-present (CNP) fraud will increase as cybercriminals shift their attacks to online fraud. The following has been excerpted from the paypers.com article and edited to fit our format. You may find the paypers.com piece by clicking on this link.
Counterfeit cards cost $3.9 billion in 2014
Findings indicate that the use of counterfeit cards cost U.S. issuers, acquirers and merchants USD 3.9 billion in 2014, accounting for 23.9% of total global fraud losses.
Cybercrime moves online
With the October 1 deadline for chip cards in the U.S. around the corner, Nilson Report expects some of that fraud activity to move online.
Card-Not-Present losses present a problem for Asia Pacific with highest growth rate
Card-not-present fraud…rose in the Asia-Pacific region due to the growth of e-commerce sales there. Asia-Pacific web sales grew 37% from 2013 to 2014, according to Internet Retailer estimates, the highest growth rate of any region.