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CNP fraud to cause losses of USD 7 bln by 2020

Wednesday 11 May 2016 10:09 CET | News

An Iovation and Aite Group study has revealed that CNP fraud will cost merchants and financial institutions USD 7,2 billion in the US by the end of 2020. 

The report - ‘EMV: Issuance Trajectory and Impact on Account Takeover and CNP’- says that the cost to financial institutions of account takeover losses will increase from USD 644 million in 2015 to more than USD 1 billion by 2020 in the US.

Julie Conroy, research director at Aite Group, said that as the U.S. migration to EMV progresses, the combination of continued strong growth in ecommerce, ready availability of consumer data and credentials in the under-Web, and disappearing counterfeit fraud opportunity will create a perfect storm that will result in a sharp rise in CNP fraud. 

Counterfeit card fraud for card-present transactions will fall from a high of USD 4,5 billion in 2016 to less than USD 1 billion in 2020, according to the same study. This figure is based on the reports assumption that 81% of credit and 57% of debit cards in the US will switch to EMV standard by the end of 2016.


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Keywords: CNP fraud, security, ecommerce, merchants, account takeover, EMV, data, cards, transactions , study
Categories: Fraud & Financial Crime
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Countries: World
This article is part of category

Fraud & Financial Crime