Increased CNP transactions still provide fraudulent opportunities, report says

Friday 2 November 2018 09:43 CET | News

A joint report of MAGCMSPI and Fiserv has found that growth in the card payments market and increased CNP transactions continue to provide fraudsters with opportunities.

The 2018 Global Fraud Trend Analysis and Review report examines global payment and fraud trends across the world, analyzes contributing factors behind shifting card fraud patterns, and identifies various fraud management solutions available to merchants.

CMSPI and MAG conducted a survey of US and Europe-based retail merchants with questions regarding CNP fraud mitigation measures and card-present (CP) fraud. Of merchants who were exposed to CNP fraud, 81% stated they used in-house risk-based anti-fraud measures, and 76% said they used external measures to protect against CNP fraud, often as supplementary measures. Merchants exposed to CP fraud were asked what was their most important consideration when choosing an EMV authentication method, and five recurring responses were identified: cost, risk, customer experience, speed, and complexity.

Merchants who were exposed to both CNP and CP fraud were asked what was the most common reason given by issuers for chargebacks. The question prompted open-ended answers, which were then grouped into different categories. The most common reason for chargebacks given was fraud related, followed by authentication issues, consumer disputes, chargebacks due to goods not received, and duplicate charges. 

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Keywords: CNP payments, fraud, report, Fiserv, merchants, retail, MAG, CMSPI
Countries: World