Digital Credit And Debit Card Fraud Essay

741 WordsFeb 7, 20163 Pages
The Problem: Worldwide credit and debit card fraud resulted in losses amounting to $16.31 billion during the year 2014. The United States has been disproportionately affected by this fraud, due to their lack of adoption of the EMV Chip security measure. According to the 2012 Nilson Report, American card issuers lost $3.4 billion and merchants lost another $1.9 billion. America makes credit card fraud easy for fraudsters, by still relying on cards with magnetic strips which are less secure than EMV Chip enabled transactions. Consumer Value The main sources of value that EMV Chip transactions will provide consumers are their new anti-fraud security features. These features will give the consumer piece of mind that their money, the banking institution, and the merchant accepting payment are all secure. An additional value to the consumer of EMV Chip transactions is the ease of enrollment. There is no difference in enrollment for an EMV Chip card compared to the magnetic stripe card, though new cards will need to be issued. There is a considerable difference on the individual transaction level when completing an EMV transaction as the device is now inserted into a reader, as opposed to just “swiped” in a machine. The new insertion process is not difficult, but could have a behavioral and learning curve. Consumer Reduction in Net Value When the EMV Chip is inserted into the reader, the card should not be moved or wiggled as this could greatly reduce the success of
Open Document