While payment technologies advance at a rapid pace, the battle to prevent payment fraud continues to be neverending. Participants in the ecosystem need to arm themselves against relentless criminal elements. Identity theft, data breaches and the expansion of remote payments such as ecommerce and mcommerce are all contributing to the uptick of card-not-present (CNP) fraud.
CNP fraud is growing exponentially and as predicted such that the fraudsters are succeeding. CNP fraud includes purchases made online, through mobile devices and over-the-phone, leading to billions of dollars in losses and expenses for financial institutions and retailers. The problem is getting worse as this year, U.S. financial institutions are expected to write-off $6.4 billion due to CNP fraud.
In the U.S. alone, CNP fraud has increased to 68 percent of card fraud, according to U.S. Payments Forum. This is leaving consumers with heightened feelings of anxiety about the safety and security of their debit and credit card account information. This fear impacts all ecommerce shoppers irrespective of age, the type of card they use (credit, debit, or prepaid debit) or whether they’ve experienced a previous fraud event.
A recent TD Bank survey report that collected responses from 390 finance professionals showed that
84 percent of those polled indicated cybersecurity and payment fraud were their top concerns. Those same professionals also stated that they expect payments fraud will become an even bigger threat in next one to two years.
As this trend continues, it’s more important than ever for card issuers to have the right protections in place while ensuring that customers are protected.
CVV+ provides fraud authentication and prevention for credit, debit and prepaid cards. CVV+ is a dynamic, out-of-band code that replaces the static code printed on the card. The flexible solution works in issuers’ existing ecosystems, does not require any changes to merchant systems or procedures, and doesn’t rely on cardholders to provide any personally identifiable information.
For card issuers and financial institutions, CVV+ helps to improve margins, reduce costs and increase revenues. For consumers, a card with CVV+ fraud prevention in place, it makes the card the most secure and usable option in their wallet. It also empowers consumers with a simple way to proactively protect themselves from CNP fraud.