EMV is making its way towards a fraud-free sector, and innovative advancements are shaking hands with it to provide a phenomenal experience.
FREMONT, CA: Gone are the days when standing in a queue for cash was a necessity. In this new generation of EMV shift, the payments industry has covered a long road to making its place. Fraud remains a common challenge that is still faced even after every innovation in the sector. Sources say that there is a 76 percent dip in card-present counterfeit payment fraud after the EMV shift. Reduction of counterfeit fraud is one of the main reasons why chip technology was profoundly embraced. More than 90 percent of credit-cards are chip-enabled, and influential retailers have modernized their payment systems, boosting the share of transactions. With the wide adoption of EMV, fighting fraud has become easier than ever.
Chip technology has reduced fraud at the physical point of sale. According to a report, in 2016, counterfeit fraud claims have declined for five consecutive quarters and are down 34 percent from its peak. False card use will continue to decrease as the EMV adoption market increases. EMV adoption has activated a variation from fraudulent synthetic cards to fake identifications, which fraudsters are using to open accounts. The increase of identity data obtainable for purchase on the dark web is a predicament which jeopardized the personal credit bureau data. This will lead to an invasion of application fraud in the future.
EMV cards are tedious to replicate, and fraudsters are sharpening their abilities in classic identity theft. EMV cards have gone a long distance to avoid credit card fraud. In this situation, biometrics becomes the ultimate solution for users. Many multinational financial services have tested biometrics authentication technology to reduce fraud. The cards have a tiny biometric scanner in the right-hand corner where the user places their fingerprint during transactions. It is then verified against a stored template, allowing authorized transactions to go within. The cardholder is required to register their fingerprint at a regional bank branch. This security is then saved on the card for future use as well and is associated with the database on every transaction.
A new solution on payment was developed termed as PIN on mobile. The technology empowers customers to use both PIN and chip on the users' smartphone. A back-end service interprets and verifies that the execution conditions of the device are protected before the user enters their PIN. With a reliable physical transaction, continued growth in online and mobile transactions and e-commerce and m-commerce shopping are the biggest roots of fraud. Card issuers are improving security on such transactions using OTP and randomly-generated passwords sent to the registered mobile number or email address to authenticate transactions.
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The user experience of EMV is taking a different shape. While the networks are operating on upgrades to make transactions quicker, EMV has triggered stimulated calls for contactless technology, making mobile payments more appealing. With the non-traditional techniques, providers and their deep pockets are more imaginative and flexible. Credit card security and fraud prevention is not at 100 percent currently, but with the technological advancements taking place, it is nearing to a time where fraud is eliminated.