Digital Economy Poses New Fraud Risks, says Worldline
Following a period of decline in fraud, mainly due to the migration to Europay, MasterCard and Visa (EMV), recent evidence suggests it is starting to increase and the increase will accelerate if stronger security measures aren’t implemented, according to Worldline.
The company, an e-payment and transactional services subsidiary of Atos, is offering advice to issuers and acquirers on how to prevent, detect, and react more proactively to the growing risk of fraud. In
a newly-released position paper
, Worldline outlines practical recommendations on how to re-assess the fraud risk in light of new threats it anticipates due the growth of the digital economy.
“As ever, fraudsters actively seek out and exploit the weakest links in the system, and the evolving digital economy is creating new fraud threats and an increase in financial crime,” the company reports. “Fraudsters have shifted from exploiting face-to-face to card-not-present transactions.”
According to the European Central Bank’s (ECB)
‘Card Fraud Report’,
published last February, 60% of the total value of card fraud in Europe came from card-not-present payments. Countries most affected by fraud today are those with mature card markets with high e-commerce volumes; principally France and the UK.
“Now is the time for issuers and acquirers to re-assess their situation in order to review all relevant processes, tools and measures they already have in place,” said Wolf Kunisch, Head of Financial Processing at Worldline.
“These may have delivered good results in the past, but the question they should ask now is, are they sufficient to cope with a new fraud wave which may impact all channels and new means of payment. We are convinced that a new approach is necessary to beat a new fraud wave and maintain the trust of consumers.”