Credit card fraud protection has been a challenge in the financial services industry for years. But according recent research, increased adoption of chip-and-PIN technology is already keeping more transactions safe from fraudsters.

The “Visa Chip Card Update” revealed a 70 percent drop in counterfeit dollars over a two-year period among U.S. merchants who have completed the chip upgrade. Sometimes referred to as Europay, MasterCard and Visa (EMV) technology, the chip-and-PIN design was first suggested about seven years ago as a way to improve credit card fraud protection.

Security Gaps Remain Despite Increased EMV Adoption

While the statistics from Visa are encouraging, they don’t mean that threats to financial systems and consumers have gone away. Forter’s “Fraud Attack Index” found that account takeover attacks against online payment accounts increased by 131 percent between 2015 and 2016.

But even if EMV adoption boosts credit card fraud protection, 85 percent of merchants are still concerned about card-not-present (CNP) attacks, according to Vesta’s “2017 Financial Impact of Fraud Study.”

The FBI has issued public advisories suggesting that moving to EMV alone will not keep consumers safe. Besides the potential for counterfeit chip-and-PIN cards, it is often far too easy for cybercriminals to find payment details stored in the profiles of e-commerce sites, Bleeping Computer noted. If malicious software can get into the back end of various online shopping services and steal that kind of information, credit card fraud protection becomes far more difficult.

Shoring Up Credit Card Fraud Protection

Gizmodo suggested that merchants who haven’t moved to EMV will likely do so based on Visa’s data. Additionally, the rules established three years ago may hold these organizations responsible for credit card fraud protection if the technology is not in place.

Following major data breaches at well-known retailers, there might be an understandable wariness among customers to hand over their card data in stores where only a magnetic stripe reader is still in use. Online theft may continue to loom in the shadows, but this is an area where organizations can make a significant IT security improvement today.

More from

$10.3 Billion in Cyber Crime Losses Shatters Previous Totals

4 min read - The introduction of the most recent FBI Internet Crime Report says, “At the FBI, we know ‘cyber risk is business risk’ and ‘cybersecurity is national security.’” And the numbers in the report back up this statement. The FBI report details more than 800,000 cyber crime-related complaints filed in 2022. Meanwhile, total losses were over $10 billion, shattering 2021's total of $6.9 billion, according to the bureau’s Internet Crime Complaint Center (IC3).  Top Five Cyber Crime TypesIn the past five years, the…

4 min read

How to Boost Cybersecurity Through Better Communication

4 min read - Security would be easy without users. That statement is as absurd as it is true. It’s also true that business wouldn’t be possible without users. It’s time to look at the big picture when it comes to cybersecurity. In addition to dealing with every new risk, vulnerability and attack vector that comes along, cybersecurity pros need to understand their own fellow employees - how they think, how they learn and what they really want. The human element — the individual and social factors that…

4 min read

Detecting Insider Threats: Leverage User Behavior Analytics

3 min read - Employees often play an unwitting role in many security incidents, from accidental data breaches to intentional malicious attacks. Unfortunately, most organizations don’t have the right protocols and processes to identify potential risks posed by their workforce. Based on a survey conducted by SANS Institute, 35% of respondents said they lack visibility into insider threats, while 30% said the inability to audit user access is a security blind spot in their organizations. In addition, the 2023 X-Force Threat Intelligence Index reported that…

3 min read

Poor Communication During a Data Breach Can Cost You — Here’s How to Avoid It

5 min read - No one needs to tell you that data breaches are costly. That data has been quantified and the numbers are staggering. In fact, the IBM Security Cost of a Data Breach estimates that the average cost of a data breach in 2022 was $4.35 million, with 83% of organizations experiencing one or more security incidents. But what’s talked about less often (and we think should be talked about more) is how communication — both good and bad — factors into…

5 min read