IDG Contributor Network: Why EMV is making fraud soar
As the U.S. slowly creeps toward EMV acceptance — make that very slowly — predictions have been consistent that it would translate into a sharp spike in e-commerce fraud. That's logical enough, given that EMV makes it far more difficult fora cyberthief to engage in his favorite in-store technique: card cloning. But it looks like fraudsters didn't bother to wait for meaningful implementation before shifting.
According to new stats released last week from a study by Pymnts.com and Forter, "In just the last four quarters, fraud attacks (for all retail channels) have jumped by 137 percent, affecting over $7.30 out of every $100 made in retail sales." Let's put that $7.30 for 2016 into context. In last year's third quarter, it was $3.10. In last year's fourth quarter (when the all-crucial holiday sales sends all activity soaring), it was only $2.50, the study reported. So, yeah, $7.30 is a bit alarming. When the report isolated its examination to solely digital goods, that fraud went up to $10.80 for every $100.
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