Javelin: Card-Not-Present Fraud Jumped 40% in 2016Criminals Getting Stealthier, Online Merchants Can't Keep Up
Card-not-present fraud skyrocketed in 2016, jumping 40 percent from 2015, according to Javelin Strategy & Research.
Al Pascual, head of security, risk and fraud at Javelin, says 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 percent 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 contends 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 argues.
In this audio interview at RSA Conference 2017, Pascaul discusses:
- Why online fraud is increasingly easier for fraudsters to perpetrate than POS fraud;
- How an increase in mobile device compromises is fueling CNP fraud; and
- Why more customer education about digital security is a must for 2017.
Pascual leads Javelin's security, risk and fraud practice. He began his career with HSBC during the height of the mortgage boom. While working in HSBC's borrower verification department, Pascual performed enhanced due diligence investigations of high-risk loans. He later joined Goldman Sachs' fixed income, currency and commodities division, serving on its mortgage fraud investigations team. He also worked at Fidelity National Information Services, now FIS Global, overseeing data driven investigations of organized payment fraud groups in the United States.
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