Updated: Oct 8, 2018
A couple of years ago, financial institutions started issuing credit and debit cards with “chips” which made the extraction of card information by fraud syndicates more difficult as compared to the existing magnetic stripe Cards. A revolutionary move that changed not only the cards themselves but also the readers connected to Point-of-Sale systems.
These new cards offer an extra layer of security for in-store transactions, depending on how they’re used. So far, they’ve been nearly impossible for fraudsters to replicate further protecting businesses from fraud.
The problem is, it didn’t stop fraud, it merely shifted it from Card-Present (CP) to Card-Not-Present (CNP) fraud. Publicly available estimates of the actual cost of CNP fraud vary considerably, but estimates of the global scale of e-commerce fraud losses range from $25 billion to $40 billion.
The costs of fraud to eCommerce merchants goes beyond direct financial losses and include the indirect costs of prevention efforts and the significant potential for damaged business reputations. Those costs were estimated by Javelin in 2016 to represent an astonishing 7.6% of all eCommerce sales.
On the flip side of the coin are the financial institutions, credit card networks, and payment processors who are working hard to make the future of eCommerce safe for consumers and businesses alike. These payment industry leaders are deploying state-of-the-art technology, rigorous processes, and the best and brightest teams to protect the hard-earned reputation and bottom line of businesses just like yours.
One of the companies that financial institutions are turning to is TRACK4. Using our proprietary system, we are able to Scan, Analyze and Identify stolen credit & debit cards BEFORE they are sold and fraudulently used. This eliminates the necessity for incurring the effort and expense of dealing with fraud afterwards.
To learn more about TRACK4’s solution, reach out to us at firstname.lastname@example.org