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Card-not-present frauds on the rise, retailers set to lose billions

(Image credit: Image Credit: Megaflopp / Shutterstock)

Retailers are facing losses of up to $71 billion globally as the number of fraudulent card-not-present (CNP) transactions rises hugely within the next five years.

A new report from Juniper Research has revealed that a number of different factors are driving the increase in fraud, including the US shifting towards EMV cards, delays in 3DS 2.0 and click-and collect fraud methods.

The report, entitled Online Payment Fraud: Emerging Threats, Key Vertical Strategies & Market Forecasts 2017-2022, claims many retailers still see cyber-security solutions as too expensive. Juniper Research believes they will be underprepared for frauds when EMV gets introduced in the States.

The report also says that the retailers’ claims of cybersecurity solutions being too expensive don’t hold water. 

“Juniper’s cost analysis of FDP (fraud detection and prevention) solutions found that in most instances, merchants would receive value from their investment,” the report says. 

“The analyst house therefore urged players across the value chain to increase their efforts in educating merchants on the benefits of FDP.”

“2018 will herald the arrival of new tools in the fight against fraud”, noted research author Steffen Sorrell. “3DS 2.0 will finally begin to rollout and will mark a paradigm shift in terms of merchants and issuers leveraging shared data. We also expect passive biometrics, such as the manner in which a device is handled, to become key in the future.”

You can read Juniper Research’s full report on this link (opens in new tab)

Image Credit: Megaflopp / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.