Online fraud spikes 137% despite new chip-based security measures, study says

Fierce Retail – BRP’s Perry Kramer reveals that EMV processing is not enough protection against e-commerce fraud. According to a new white paper from BRP, The Payment Security Update: What’s New After EMV,” fraudsters have become more sophisticated and retailers need to adapt to protect customers’ payment cards and personal data.

According to BRP, EMV—which stands for Europay, Mastercard and Visa and is a global standard for chip cards—doesn’t offer enough data security and retailers need to be looking at end-to-end encryption (E2EE) and tokenization options.

In another recent survey by BRP, 68% of retailers reported implementing E2EE and 48% have implemented tokenization of payment data.

So why are more retailers not implementing these security strategies? The white paper states that the challenge is to deploy the best security, while at the same time maintaining corporate advances in omnichannel commerce initiatives. In other words, developing a synergistic payment and security strategy.

“While EMV has received most of the attention in the last few years, there are several other critical security strategies that play a much greater role in protecting sensitive payment card and personal information,” said Perry Kramer, vice president and practice lead at BRP. “It is imperative that retailers have the right strategies and controls in place to thwart the ever-increasing advances made by fraudsters.”

So why aren’t more retailers implementing these extra security measures?

Kramer explains that there are two large obstacles for retailers when they attempt to implement payment security strategies. The first is the ability to align the vision of a customer journey with the security and IT teams’ requirements and resources.

“In many cases, the business has not taken the time to step back and clearly define what they want the customer journey and experience to be,” he told FierceRetail. “This makes it impossible for the IT and security teams to create the environment that achieves the right customer experience and appropriate level of security.”

Read Full Article: Online fraud spikes 137% despite new chip-based security measures, study says

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