Perpetrators of fraud will typically take the path of least resistance to achieve their desired ends. The stage rollout of EMV cards in the U.S. has had the unintended consequence of pushing some bad actors previously engaging in physical POS fraud to refocus on e-commerce to bypass EMV through card not present (CNP) transactional activity. The author recognizes the trend and suggests expanded use of biometrically affirmed authentication to further guard against fraudulent activity.
Biometrics is a powerful identification tool along the lines of device authentication, one-time passwords and randomized PIN pads. Used in combination with methods that include proprietary and/or transactional data, 3-D Secure (3DS) and tokenization, CNP merchants are in a better position to prevent fraud.
Mercator Advisory Group asserts that the most effective counter-measure strategy to guard against fraud and use of stolen credentials is the implementation of multi-tiered use of a variety of identification and authentication tools.
Overview by Joseph Walent, Senior Analyst, Emerging Technologies at Mercator Advisory Group
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