Online fraud surges after EMV chip cards hit the US
As predicted, crooks switch to where cards are still vulnerable
By Sabrina Karl | Published: December 27, 2016
Data whiz and visual storyteller
Thanks to the chip card, in-store transactions are now much more secure. But that’s pushing fraudsters to more earnestly target online retailers, at dramatically amped-up rates.
The effect is easy to see by comparing online fraud growth in the U.S. – where chip cards were rolled out largely in 2016 – versus fraud rates across the global marketplace. That data was released Nov. 22 by ACI Worldwide.
While the total number of global online transactions increased 13 percent from 2015 to 2016, the percent of fraudulent transactions grew slightly less, at 12 percent. In contrast, a 12 percent growth in U.S. online transactions over the previous year was dwarfed by a 43 percent gain in fraud attempts.
Still, online fraud rates in the U.S. are much lower than the global average, at just under 1 percent of transactions in 2015 versus over 2 percent globally. But given the U.S. surge in online fraud in 2016, that gap is narrowing, with the U.S. rate now standing at 1.27 percent of transactions.
ACI Worldwide, a global electronic payments processor, analyzes its year-over-year data from payments made to 125 retailers that utilize its ReD Shield service.
To use the graphic on your site, use the following code:
- Breaking the budget to go on vacation – Millennials most likely to take on debt for a summer experience ...
- Infographic: How many households have at least one card? – Your annual income and education level may indicate the chances of whether or not your household has a credit card ...
- Infographic: In divorce, women's credit suffers more – More than half of recently divorced women said their credit score tanked during marriage, compared to just 42 percent for men ...