Combatting credit card fraud is a huge issue in electronic payments. According to an article published on March 3, 2016 by Market Wired, "A recent survey conducted by Vantiv and Socratic Technologies found more than 40 percent of consumers have fallen victim to either credit or debit card theft or fraud."
Most credit card companies have moved to the new EMV chip technology to combat credit card fraud. As more merchants become chip-enabled, consumers can feel more secure in using their credit cards in stores, without the fear of theft or fraud. However, the system is not fool-proof, and problems persist in the area of card-not-present (CNP) fraud.
As chip technology has come into play since 2014, criminals have turned their attention to CNP fraud where it's much easier to make fraudulent purchases. There are several companies working to combat all areas of credit card fraud, and especially CNP fraud. According to The Green Sheet in an article published March 1, 2016,
"Total System Services Inc. (TSYS), a global acquirer based in Columbus, Ga., and Ethoca Ltd., a technology services company headquartered in Toronto – recently teamed to create a new level of protection for e-commerce transactions. . . The platform will enable TSYS to automatically deliver confirmed fraud data from the issuer to Ethoca in near real time. In response, Ethoca will pass confirmed cases of card fraud across a large, global merchant network to recover funds via transaction reversal or refund, negating the need for an issuer to initiate a chargeback procedure."
Hopefully there will be widespread adoption of this technology to protect the payment security infrastructure and continue e-commerce sales growth. E-commerce sales are expected to exceed $3.5 trillion over the next 5 years.
Two other technologies have been developed by SmartMetric, Inc. The first is a fingerprint activated biometric credit card which contains a very small fingerprint scanner that identifies the cardholder and activates the card for use at the store. This technology does not require any changes in how stores process credit cards, which is important, since equipment upgrades are still being made by retailers for chip technology.
SmartMetric has also developed a USB card reader adaptor that addresses CNP fraud. The consumer inserts the card reader into the USB port of the computer, activates the card by swiping his finger and then inserts the card into the reader. This incredible technology could reduce CNP fraud greatly. Best of all, the biometric card works with EMV chip technology.
IRIS CRM serves clients in the payments industry. Contact us for more information on the services we offer for your business' productivity and growth.
