According to ACI Worldwide, the online fraud attempts rose 30% from 2014 to 2015. This spike was expected by analysts who referenced trends seen in Canada. When Canada migrated to EMV between 2008 and 2015, CNP fraud increased by 133% at the same time. ACI Worldwide shows that from January-to-July, fraud attempts in America went from 1 out of every 114 transactions to 1 out of every 86 transactions. Approximately every dollar in fraudulent transactions will cost merchants $3.08. And CNP fraud is estimated to double to $6.4 billion by 2018. If merchants believe they have time to beef up online security, they are very wrong.
Analysts believe that 2015 will be the riskiest season that retailers have seen. As merchants move to EMV chipped cards, fraudsters will increase online fraud attempts as card-not-present fraud will be simpler to execute than debit and credit fraud in an EMV world. With EMV, a small micro-chip is embedded into a debit or credit card that makes a unique code for every transaction. Aité estimates that 70% of U.S. cards will be chipped by the end of the year, and 98% by 2017.
Card-Not-Present fraud will affect every merchant that sales merchandise online. But some types of businesses could be more affected than others, and have worse consequences for card owners. Extreme consequences of online fraud were experienced by members of the adultery website, Ashley Madison. A few months ago, a group of hackers penetrated the infrastructure of the website and took the personal information of 37 million members. While the website quickly regained control of the system, the credit card numbers of 37 million subscribers were exposed and could have been copied.
If you are an online dating merchant that accepts online payments, you must invest in online security measures or be vulnerable to fraud and chargebacks. EMB provides merchants a full suite of fraud prevention tools through Chargeback Shield. Chargeback Shield will defend your online dating merchant account, while you concentrate on customer service. If your chargeback rate is less than 3%, EMB can help you expand your profits with premium adult processing services.