Based on a report made by consultancy Aite Group and commissioned by antifraud technology provider iovation, CNP fraud losses in the US will count for $7.2 billion per year by the end of 2020.A more recent report shows account takeover fraud will make up another $1 billion in losses.
The issuance of chip-enabled payment cards in the US is believed to significantlyaffect both CNP fraud and account takeover fraud. The thing is that criminals try to find easier ways to monetize stolen information and data.
According to the above-mentioned report, counterfeit fraud at the point-of-sale will go down from $4.5 billion in 2016to less than $1 billion in 2020. Take into account thatalmost all cardholders are expected have chip cards in hand in 2020. CNP fraud will eventually grow as it happened in Canada, the UK, Australia, and other countries that adopted EMV payment cards.
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US eCommerce Market
Julie Conroy, research director at Aite Group, highlighted the following factors that will cause increase in CNP fraud in the US with the migration to EMV:
- The combination of continued strong growth in eCommerce
- Ready availability of consumer data and credentials in the underweb
- Disappearing counterfeit fraud opportunity
Nowadays, takeover fraud is a major threat to insurance companies,retailers, and other merchants. The thing is that it is difficult to detect because either value stored in the account or a card on file are being used to look like making legitimate purchases.
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Conroy further notes that card-not-present fraud is already increasing. She believes financial institutions and merchants must focus on technologies that can help them detect fraud, simultaneously maintaining a delightful user experience.