What issuers can do today to address card-not-present fraud

by. Nicole Reyes

The most important change an issuer can make to address the growing risk of card-not-present (CNP) fraud is to hone its fraud-detection strategies to identify and prioritize accounts where a transaction has been declined by a 3D Secure module; those accounts should be queued for review by a human fraud analyst.

Card issuers may want to take their fraud-prevention measures a bit further by writing strategies that analyze other risky attributes, such as dollar amount region or risk scores. In the event the 3D Secure validation for a fraudulent transaction is authenticated, allowing a fraudster or account takeover artist to move forward with the transaction, those strategies would fill in behind 3D Secure, acting as a second layer of protection.

The new state of the CNP chargeback, in combination with the predicted increase in e-commerce and online fraud in the wake of EMV, has forced card issuing financial institutions to pay more attention to their CNP fraud strategies. As fraudsters acclimate to the new world of payments, issuers, too, must adjust their strategies to keep fighting the good fight.

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