The increased adoption of chip cards has fraudsters moving online, but businesses are fighting back with improved online security.
Security is one of the biggest concerns of our IT clients and for a good reason. The more the digital age advances, the more inventive criminals become. As one vulnerability is addressed, numerous others pop up. The adoption of credit card chips and the subsequent behavior of offenders – moving from targeting brick and mortar businesses to targeting online companies – is a perfect example of this kind of phenomenon.
Credit Card Chips Push Criminals From Brick And Mortar To Online Stores
In a recent article in SF Gate, statistics on the use of stolen credit card data point to a growing trend in online fraud attempts. According to Javelin Strategy & Research, the use of stolen data for making unauthorized purchases was up 40 percent last year, a substantial increase. Because the number of attempts at fraud are increasing so drastically, merchants are being forced to respond in kind – spending billions of dollars to protect online customers from criminals trying to use stolen credit card information.
Some speculate that the rise in online fraud attempts is related to the increase in the adoption of chip cards. If you have gotten a new credit card or debit card, chances are you have seen the chips that indicate new security measures put in place by banks and financial institutions. The chips are supposed to make it harder to counterfeit credit cards. The success of credit card chips in protecting consumers seems to be pushing criminals to attempt fraud where they can be more successful – online.
Businesses Are Pushing Back With Improved Security
Financial institutions and online retailers and businesses are increasing their spending on the safety to combat the fraud perpetrated by criminals. According to Juniper Research, by 2020 these organizations will spend approximately $9.2 billion dollars on fraud-detection systems. If the estimate is accurate, it will indicate and increase in spending of 30 percent over the next three years.
Businesses are taking the problem seriously, as are security technology companies. Multiple approaches are necessary to keep up with the ever-changing strategies of fraudsters, including improved authentication processes, better detection methods, temporary number replacements for credit cards, and even AI and machine learning to identify potential fraud.
Successfully combating fraud requires combining the latest security technologies with good old fashioned human interaction. While security companies and businesses are leveraging a variety of technology tools to detect and deter fraud, they are also incorporating human analysts to look for potential fraud and to contact card owners to verify purchases and identities.
Keeping Up With The Criminals Is An Ongoing Process
We appreciate how concerned our clients are with their security. It only makes sense to be diligent when you and your clients are at risk. But we also like to stress that fraud – while a serious problem that needs to be addressed is a problem that will never be fully eliminated. With or without technology, there will always be criminals attempting to take advantage of businesses and their customers.
As your Washington, DC or Baltimore IT company, we are focused on your security. We keep up to date on the latest threats and security solutions, and you can depend on us to do what is necessary to minimize your risk.
If you have questions or concerns about your business or your customers, please contact our team at Hammett Technologies today at (443) 216-9999 or firstname.lastname@example.org. We are your resource for IT security in the Washington, DC or Baltimore area.