Smart chip-enabled credit cards make up about 81% of all credit cards in the UnitedStates, according to Aite Group’s “EMV: Issuance Trajectory and Impact on Account Takeover and CNP” report. Chip cards and the EMV standard (short for EuroPay, MasterCard, Visa) for debit and credit card payments in stores uses cards with microprocessor chips rather than the decades-old magnetic stripe technology, making it more difficult for criminals to commit fraud in stores. Those cards, however, have driven criminals to exploit online merchants’ security gaps. As a result, card-not-present (CNP) and account takeover (ATO) fraud are on the rise.

“The sophistication of attack methods is evolving to automated, machine-driven attacks—such as using bot networks infected with malware without the device user’s knowledge, device spoofing in which criminals evade device recognition to masquerade as legitimate customers, and location masking that disguises true location—to comprise merchants’ defenses,” says Glen Goldstein, vice president of technology, retail and e-commerce markets at TransUnion, a global risk information provider. “This is leading to more…

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