What is Card-Not-Present Fraud?
Card-not-present fraud occurs in transactions — such as those conducted online, over the phone or on mobile — where the buyer is not required to physically present the card to the retailer to complete the purchase. Because it’s difficult for eCommerce retailers to verify the actual cardholder, card-not-present fraud has increased in parallel with the rise of global digital commerce.
Why is Card-Not-Present Fraud On the Rise?
Fact: EMV technology has led to an 80 percent decrease in card-present fraud. When the payments industry made the shift to EMV or “chip” credit cards, the security of card-present transactions experienced a boost, leaving fraudsters in the dust. But as a result, fraudsters have moved to other, less secure channels to commit fraud — primarily, online.
Click here to read more of this blog by Rich Stuppy, Chief Customer Experience Officer, Kount.