PLEASANTON, Calif.—Card not present fraud skyrocketed in 2016, jumping 40% from 2015, according to Javelin Strategy & Research.
Al Pascual, head of security, risk and fraud at Javelin, noted a slight increase year-over-year in CNP fraud was expected in the U.S. as the rollout of EMV chip cards and payments shored up card security at the physical point of sale. But the 40% jump reported by Javelin proves more is going on than a mere shift in fraud from card present to card not present in the wake of EMV, he shared in an interview with Information Security Media Group.
An increasing number of online mobile payments compromises, coupled with weak authentication and compromised payment credentials, proves online merchants are not keeping up from a security standpoint, Pascual told Bank Info Security.
Bank Info Security said Pascaul noted that online fraud is increasingly easier for fraudsters to perpetrate than POS fraud; an increase in mobile device compromises is fueling CNP fraud; and more customer education about digital security is a needed in 2017.