Understand CNP Fraud and What You Can Do About It

According to the Australian Payments Clearing Association (ACPA), the new Europay, MasterCard and Visa (EMV) chip cards have reduced domestic skimming fraud. This reduction will likely continue as our country’s systems become more fully integrated — so long as skimming fraud doesn’t continue to increase online. However, skimming fraud isn’t the only risk: Card-Not-Present (CNP) issues are on the rise, having increased 38% between 2014 and 2015. So, what else can business leaders and institution decision-makers do the protect consumers against CNP fraud? Here are some best practices to follow to keep your customers safe:

• Monitor for unusual activity. Fraud detection tools monitor purchases to spot unusual activity that could be fraud. Keep up with this type of monitoring to catch the tell-tale fraud signs.
• Take additional verification steps. Go beyond card number and expiration date requirements. For example, verify the three-digit security code on the back of the card for customers’ transactions. If the user obtained the card number, the likelihood of the thief also having that security code is smaller.
• Educate consumers. Teach consumers how to protect themselves from malware. Suggest effective security tools and educate consumers on how to create strong passwords.
• Provide “tokenisation” options. Tokenisation allows consumers to get unique codes for each online transaction rather than use their full card numbers online. That way, cards remain uncompromised if thieves steal codes.
• Follow the rules. Stay compliant with Payment Card Industry Data Security Standard (PCI DSS) regulations and only use approved devices to protect your business and your customers not just from fraud but also from liability.

Unfortunately, for every move we make to improve security, criminals take their own steps. Each time technology improves to prevent fraud, criminals invent new tactics. Staying one step ahead requires implementing all the security tools you have at your disposal and keeping your customer base well-informed about the steps they can take to protect their own data.

[cta]Do you have security concerns or want to make sure your preventive measures are up to date? Contact your DC Payments representative by email or call our toll-free number at 1800 301 100.[/cta]