The Secret Weapon to Combating Online Payment Fraud

The adoption of EMV chip card technology by US retailers was designed to protect consumers from fraud. And while the chips are making in-store fraud much more difficult, criminals haven’t been deterred from stealing consumers’ financial data. Thanks to the law of unintended consequences, the barriers put in place thanks to EMV have caused criminals to turn their attention to online fraud.

The Rise of Online Consumer Fraud

By 2017, nearly two million U.S. retailers switched to an EMV system. Cards that contain EMV chips are much harder to counterfeit than standard cards, thus cutting down on in-person fraud. However, according to data from Javelin Strategy & Research, the use of stolen credit card data to make fraudulent purchases on websites, mobile apps and phone transactions rose 40 percent last year.

Global e-commerce is surging, and so are data breaches. With so much personal information available on the black market, companies often feel like they are a step behind hackers. It is estimated that merchants and banks will invest $9 billion annually in fraud detection solutions by 2020, a 30 percent increase from today’s investments. Even as retailers invest more resources in security, criminals are responding with more sophisticated methods of committing fraud, including automated bot transactions that eliminate the need for human involvement.

High-profile data breaches like Target, Wendy’s and even Equifax are fueling the surge in new security investments. Companies like Visa are innovating new ways to help merchants and banks authenticate transactions, and new startup vendors are regularly entering the market, leveraging everything from dynamic security codes that change daily to artificial intelligence and machine learning to understand a cardholder’s behavior and detect potentially fraudulent transactions.

Are You Ready to Tap Into the Market?

The security environment is more challenging than ever before, and FinTech and payment companies need to invest in resources now to help them tap into the massive opportunity available to help protect consumer data. What is the secret weapon in combating online payment fraud? Talent. Putting the right fraud and risk professionals and product development professionals in place will help your firm – and your clients – rise to the challenges of tomorrow.

If you are looking for talented FinTech pros who can keep you ahead of trends, contact the expert recruiters at MoneyTech Search today.