SAN FRANCISCO--As the United States looks to implement EMV, Javelin Strategy & Research said it examined the United Kingdom EMV market as a “looking glass into the future U.S. market.”
While the rapid proliferation of EMV adoption in the U.K. produced a significant drop in POS fraud, it did not address where card fraud is most problematic—e-commerce and m-commerce, the company said. Javelin Strategy & Research’s has released a report, “Fixing CNP Fraud: Solutions for a Pre- and Post-EMV U.S. Market,” that warns that online card fraud will rapidly increase despite and irrespective of the US transition to EMV.
Javelin noted that card-not-present (CNP) fraud in the United States is expected to be nearly four times greater that POS card fraud in 2018. “CNP fraud will grow substantially, but this growth is due to an increase in transaction e-commerce volume and has little to do with a change in criminal behavior post-EMV,” said Javelin.
EMV is not a holistic solution to card fraud and therefore should be implemented in parallel with solutions that are designed to deal with where fraud is growing the most—online,” according to Nick Holland, senior payment analyst at Javelin Strategy & Research. “CNP fraud cannot be underestimated in growth or expense.”
“The Javelin report forecasted five years of online and POS card fraud amounts to 2018, in order to show the expected influence of EMV implementation on the amounts of each fraud type.