How To Prepare For The Increase In Online Fraud Caused By EMV

By Chester Ritchie, SVP, Worldpay

As the U.S. migrates its physical card infrastructure to EMV, an interesting phenomena is about to happen. It will increase fraud for Card Not Present (CNP) transactions. EMV has proven worthy in reducing physical card fraud, but hasn’t had much of an impact on overall fraud. In fact, the lesson learned is that fraud simply migrates to the least resistance. In the majority of countries that have implemented EMV, fraud has simply migrated to online transactions.

In Canada, between 2008 and 2013 we saw Card Present fraud rates decline 45% due to their EMV rollout. But, during this same period, Card Not Present fraud rose an astonishing 230%! In dollars, Card Present fraud began 2008 at $245.4 million and declined to $111.5 million in 2013. While at the same time Card Not Present fraud went from $128.4 million to $299.4 million (source: ACT Canada).