Move to EMV Cards Expected to Bring Increased Online Fraud Risk

PORTLAND, OR--(Marketwired - Sep 4, 2014) -  iovation, the trusted source for mobile and online fraud prevention to safeguard businesses, is working to raise awareness about the increased online fraud expected to hit businesses as EMV cards are adopted in the United States.

By next year most card-present businesses will make the switch to chip and pin cards as a shift in liability occurs in October 2015. This shift will make retailers and banks liable for losses from the fraudulent use of current magnetic-striped cards. Businesses in response are adopting EMV cards, which encode account information when transacting with a merchant. These cards also create dynamic, unique information so any captured data cannot be used for new transactions.

"What we've seen over and over again is that fraudsters don't stop," said Vice President of Product at iovation, Scott Olson. "When a new security measure is put in place fraudsters shift their efforts to other channels. As EMV cards are adopted by businesses we expect card-not-present (CNP) online fraud to increase."

It's important for businesses to have a strategy in place to transition to EMV cards, as well as a plan that adds another layer of protection against online fraud. Companies are generally well aware of their revenue lost to fraud and actively look for ways to stop it. To prevent fraud, businesses can utilize device-based intelligence -- which in real-time analyzes the known history, real location and other behavior patterns of devices used by cardholders.

"Businesses want to make buying their products and services as convenient as possible," said CEB TowerGroup Senior Research Director, Brian Riley. "That means you can buy from a brick and mortar store, online, or over the phone. It's important to understand that while EMV will help cut down on a certain type of fraud, it also leaves companies vulnerable to fraud at other processing channels."

iovation teamed up with CEB TowerGroup analysts to help businesses understand what changes will occur at the issuer, merchant and processor levels with EMV cards. Join Brian Riley and Scott Olson for a webinar on Sept. 9 at 10 a.m. PDT that will get your company ready for EMV and offer insights into how device-based intelligence can help you stop CNP fraud.

About iovation
iovation protects online businesses and their end users against fraud and abuse through a combination of advanced device identification, shared device reputation and real-time risk evaluation. More than 3,000 fraud managers representing global retail, financial services, insurance, social network, gaming and other companies leverage iovation's database of Internet devices and the relationships between them to determine the level of risk associated with online transactions. The company's device reputation database is the world's largest, used to protect more than 10 million transactions and stop an average of 200,000 fraudulent activities every day. The world's foremost fraud experts share intelligence, cybercrime tips and online fraud prevention techniques in iovation's Fraud Force Community, an exclusive virtual crime-fighting network. For more information, visit www.iovation.com.