It’s become much more difficult to produce counterfeit credit and debit cards, thanks to improved card design and better protection of card data that could be used to make fakes.And with the arrival over the next few years of EMV technology, it will be even more difficult to create counterfeit cards.
That hasn’t deterred the criminals engaged in organized card fraud, however. According to the analytics firm FICO, as card-present fraud has declined, there has been a real spike in card-not-present (CNP) fraud, essentially via the internet and by telephone.
“Continued improvements in fraud controls have succeeded in keeping the fraud genie in the bottle; but fraud fraudsters continue to evolve their attempts to circumvent our efforts, adapting to consumer behavior and simply following the money,” said Doug Clare, vice president of Product Management at FICO. “More online shopping has created a shift towards more online fraud, which is proving to be a popular, relatively safe and anonymous means for fraudsters to exploit any weakness in fraud systems. Consumers and issuers should remain diligent when using cards for point of sale and ATM transactions.”