Sourced From EMV Connection
What is the proven impact of EMV adoption on payment card fraud?
Countries implementing EMV chip payments have reported a decrease in card fraud. As an example of the impact of EMV, the UK Cards Association has reported a dramatic reduction in fraud since the introduction of EMV cards.
“Fraud on lost and stolen cards is now at its lowest level for two decades and counterfeit card fraud losses have also fallen and are at their lowest level since 1999. Losses at U.K. retailers have fallen by 67 percent since 2004; lost and stolen card fraud fell by 58 percent between 2004 and 2009; and mail non-receipt fraud has fallen by 91 percent since 2004.” Similarly, the national roll-out of EMV in Canada in 2008 had a dramatic impact on fraud. Losses from debit card skimming in Canada fell from CAD$142 million in 2009 to CAD$38.5 million in 2012, according to the Interac Association[i]. Interac debit card fraud losses as a result of skimming hit a record low in 2013, decreasing to $29.5 million.
The experiences of the U.K. and other countries that have adopted EMV have shown a reduction of domestic card-present fraud. But their experiences have also shown a migration to other types of fraud, namely card-not-present (CNP) fraud and cross-border counterfeit fraud (particularly ATM fraud). Fraud migration offsets some of the savings from the decrease in domestic card-present fraud. This reality reinforces the need for a layered approach to security, even with EMV deployment, to address fraud migration and other security vulnerabilities.
EMV can also address CNP fraud, as described in my blog here.
If you have any system questions or concerns, contact the CCS Retail Systems Support Department at 800.672.4806 or email us.
-Bryan
