What card fraud trends are bothering fraud managers in Europe? In this video, Gabriel Hopkins of FICO discusses the rise in card-not-present (CNP) fraud, and what card issuers are doing about it.
As shown in the 2016 European Fraud Map published by FICO and based on Euromonitor International data, CNP fraud accounts for around 70% of card fraud, and the percentage is rising. CNP fraud includes online and phone-based purchases, and as ecommerce grows it becomes a more attractive target for criminals, especially given improved verification in a card-present environment.
The challenge in fighting CNP fraud, Hopkins notes, is that retailers, etailers, issuers and banks want to maintain a smooth online shopping experience for customers. That’s why innovations in CNP fraud detection are so vital. FICO has developed new CNP fraud detection models that are focused in catching CNP fraud at the first occurrence.