In a previous post, I told you that Chip and PIN (EMV) is one step closer in the US now that First Data is rolling it out.
Statesman.com just ran an interesting article on how slow the U.S. has been to accept safer credit card technology. We already know that, of course, so the more interesting part of the article is the statistics that are offered up.
Wes Wilhelm, a senior analyst with the Aite Group, says that we’re looking at somewhere between $8 and $10 billion in credit card fraud losses this year. He also says this “is considerably more than a decade ago.” I guess so. CyberSource reported $4 billion in 2008 and $3.3 billion in 2009.
As you know, I’ve been saying that the decrease from $4 billion to $3.3 billion reported by CyberSource was probably a short term thing prompted, among other things, by the economy. Even I’m blown away by Wilhelm’s numbers. If his numbers are even close, we’re looking at a 100% or better increase in fraud this year. That’s mind boggling.
We have to remember, too, that Chip and PIN is only relevant in the card-present scenario. It offers no additional protection for e-commerce merchants. When Europe went Chip and PIN, it caused more on-line fraud. Canada is totally Chip and PIN this year and, as I mentioned in Are you ready for an increase in credit card fraud? last month, that’s going to push more fraud on e-commerce.
I can only imagine what might happen to e-commerce when the U.S. goes totally Chip and PIN unless some serious steps are taken.
Similar Posts:
- Are you ready for an increase in credit card fraud?
- Chip and PIN continues to shift fraud
- Canadian credit cards delay chip rollout
- Walmart: “My Way or the Highway”
- Chip and PIN is hackable too
