Have you seen FICO’s interactive map on card fraud in Europe yet? One of the most revealing findings from the research is that card not present (CNP) fraud has grown in severity over the last few years. The reason for this development is simple: widespread adoption of ‘Chip and PIN’ technology in Europe has made card present fraud in shops a riskier business for criminals. As criminals naturally target the weakest link, they have migrated online in droves to find easier targets.
But wait a minute… Why isn’t Internet shopping inherently secure? After all, we now have plenty of measures to make online transactions safer such as the static card verification code/value (the three digit code printed on the reverse side of the card), the 3D Secure protocol (used in Verified by Visa and SecureCode by MasterCard) and tokens that add a second layer of authentication by requesting you to produce a code received via something you have, like card readers or smartphones.