Payment card fraud losses – additional information
While the total value that is paid for credit card fraud is projected to continue increasing, recent improvements to protect against credit card counterfeit fraud have been made. Counterfeit fraud refers to fraud which is based on stealing credit card numbers which can occur by hacking a credit card terminal and then making a copy of the victims’ card. In order to protect against this, new EMV technology is being implemented.
EMV stands for “Europay, MasterCard, and Visa” - these are the companies which developed the technology. This chip technology creates a new number for every transaction that is made whereas the traditional swipe stripe is only associated with one number. Because of this, counterfeit fraud is expected to decrease from a high of 3.6 billion U.S. dollars in 2015 to a low of around 1.8 billion U.S. dollars in 2018.
According to the survey carried out in May 2014, credit card executives have overwhelming confidence in EMV technology and by 2018 it is expected that 100% of credit cards will have adopted the technology – well beyond the original three companies who established it.
The penetration of EMV compatible terminals only amounted to 14 percent in 2013, but it was projected that EMV card payment terminals would constitute 87 percent of payment terminals in the U.S. in 2017. It seems that stores would be wise to jump on implementation, because if a retailer does not accept EMV payments, they may be responsible for the costs of counterfeit fraud if it happens from one of their terminals.