Card-Not-Present (CNP) fraud involves the unauthorized use of credit, debit and/or corresponding personal identifiable information to make purchases in situations where the customer and merchant do not interact face to face. Recent reports have shown that CNP fraud is growing at a fast rate. About 16 percent of all fraud is due to CNP fraud – and that is expected to increase in coming years, which means that organizations must take steps now to ensure that customers are who they claim to be in order to prevent fraud. There are several factors that are fueling the growth and evolution of CNP fraud including consumers’ growing comfort in completing online transactions and new tools that have made the payment process both simple and easy to access.
As CNP fraud is expected to rise in the coming years to an estimated $6.4 billion loss in 2018, e-commerce businesses need to implement solutions that will eliminate these threats.
With e-commerce transactions increasing and consumers more willing to do business online, it is more important than ever for organizations to improve their identity verification processes. Check out the below infographic to learn more about Card-Not-Present (CNP) Fraud.