On a recent roadshow to visit several online merchants an alarming realization sunk in. Small and medium sized online retailers are not well informed about the soon to be implemented EMV. Granted, this doesn’t directly impact their operations because they don’t need to do anything to accept the new chip enabled cards. Online ordering will not change. It will be identical to the days before EMV. But what does this actually mean for SMBs?
Make no mistake, the fraud that is currently taking place in physical stores will move online. If credit card and identity theft criminals haven’t already discovered the unlimited and relatively anonymous options for performing retail fraud online, they will soon. Check out our infographic to see the stats for yourself.
These lucky criminals will find the joys of…
- Underground forums that teach them the specific weaknesses of certain retailers
- Leaning how to abuse coupon codes
- Knowing how to slip under dollar amount thresholds that warrant extra scrutiny
- Find which products (SKUs) offer the highest reseller value and are most easily purchased with stolen credentials.
- Knowing which retailers don’t have tight controls around re-directing packages (this is an oldie but a goodie in fraud practice).
Most large retailers believe there will be just a trickle of increased fraud attacks coming their way because they have sophisticated, layered fraud systems. When EMV was rolled out in Europe, they saw upwards of 30% spikes in fraud but have adjusted their systems to accommodate these attacks. Large merchants are ready for the disruption EMV will bring to the States.
Meanwhile, smaller retailers should be shaking in their boots. Several that we met on our tour weren’t even aware of the EMV rollout let alone considered the implications of increased eCommerce fraud. The hurdle for many of our roadshow attendees was determining the threshold they needed to meet to implement a fraud platform. Many of them simply used AVS fraud tools offered to them by their payment processor in addition to identity verification services like Whitepages Pro. These conversations exemplified the importance of having extra measures in place before this holiday season. EMV will be rolled out, holiday shopping orders will increase, and SMBs are likely to take a serious hit from new and concentrated fraud attacks.
All in all, fraud is a fact of life, especially during the holiday season. Learn how Whitepages Pro can help you process orders faster while helping to fight the rise in fraud.