The Wall Street Journal reports that "the rate of online card fraud is rising sharply as a growing number of purchases take place on the internet while brick-and-mortar merchants race to lock down vulnerabilities in the checkout line. That is prompting new steps to try to curb the threat: The credit-card industry this week is expected to announce a plan to encourage online merchants to provide card issuers with more detailed customer information that could be used to catch fraudulent purchases ... The move will allow merchants to send information such as the customer email address, billing and shipping details to the banks as additional tools to verify that the purchase is authentic."
One estimate suggests that "so-called card-not-present fraud will rise to $4 billion this year from $3.2 billion in 2015. It expects that figure to jump to $7.2 billion in 2020.
"As a result, online merchants and the card industry are scrambling to create products and procedures that can quickly identify fraudulent transactions when an unseen customer taps card information into a computer or mobile device."
One estimate suggests that "so-called card-not-present fraud will rise to $4 billion this year from $3.2 billion in 2015. It expects that figure to jump to $7.2 billion in 2020.
"As a result, online merchants and the card industry are scrambling to create products and procedures that can quickly identify fraudulent transactions when an unseen customer taps card information into a computer or mobile device."
- KC's View:
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I've always felt that one of the most reassuring calls one can get is when the bank calls to make sure that a purchase just made with one's card is legitimate. (Assuming, of course, that it is.) I think consumers will welcome any moves the banks and merchants make to make online transactions more secure, especially at a time when the headlines make it seem like the digital world is increasingly porous.
