How can we protect the future of eCommerce from Card-Not-Present fraud?

Last updated: 31 October 2019

While EMV protects against payment proximity fraud, it’s now time to tackle CNP Fraud, which has continued to grow. For perspective on how prevalent CNP fraud is, it’s been reported that last year, nearly 70 per cent of Visa and Mastercard’s losses last year were due to CNP fraud. Businesses are now continually warned over the dangers of this; however, this hasn’t slowed the overall global growth of CNP transactions.

We can do our best to mitigate CNP fraud, but the risk factor remains as growth continues; it’s a constant battle. Some even predict that, by 2018, CNP transactions will account for 25% of all card-based transactions. This is hardly surprising when you consider that while CNP transactions make up only 15% of current transactions, it’s growing at a rate that is 3.5 times faster than card-based transactions: 12% annually for debit cards and 24% for credit cards. But how can we keep these transactions secure?

Protecting banks and consumers who rely on eCommerce payments is now a priority, which is why we’ve developed a next generation payment security solution. As we alluded to in our blog yesterday covering the evolution of payment cards, today, we’re announcing the next step by launching our Dynamic Code Verification solution,

Our solution protects against CNP fraud and ensures a secure and convenient user-experience for cardholders. The solution includes an EMV payment display card that secures in-store and eCommerce payments, ATM withdrawals, a mobile version, a validation server, and associated services.

As you’ll see in the illustration above, the DCV solution allows issuers to replace the static 3-digit visual cryptogram traditionally used for online purchases with a time-based dynamic code, displayed on their payment card or via a mobile app. This code changes every 20 minutes, significantly enhancing the security level of online transactions. For more information on how this technology can protect the growth of eCommerce from CNP fraud, see the demonstration video below, or visit the DCV page here.

And let us know what you think by tweeting to us @Gemalto.