When you shop using your credit card online, then you have to sure of various factors because a lot has been changed in the recent past and thanks to the new innovations in technology, you are exposed to risks and frauds at every step. When you shop online and make payment using your credit card, then the embedded chips in cards are used to decode the transcript and as they have a magnetic input, they can be copied. It is always wise to keep all the necessary information with you and never share the card details with anyone.
Many of the major credit card issuing companies are not drifting towards the chip cards rather than issuing the credit cards to consumers. From October 1st, 2015 any losses due to fraud that have been committed involving the use of the credit cards will be the responsibility of the merchants. Until now, the bank which was involved in the transaction used to bear all the losses and to curb this down, merchants now are installing new terminals to minimize the risk to further cut down their exposure to financial loss. Fraudsters are spending lot more time exploiting the markets that are easy to hack into and online retailer market is at the biggest risk. Card not present (CNP) payment fraud is already rampant in the world of online commerce. If you are going to take the facts and figures into account then 25% of all the credit card faults worldwide are the part of CNP transactions.
To prevent all the crimes that has been done using the CNP. The industry has devised a variety of means by which to authenticate CNP transactions, and this white paper is a primer on the topic. The data and concepts described draw largely on the original work of others. CNP fraud, which involves the unauthorized use of a credit or debit card number, the security code printed on the card (if required by the merchant), and the cardholder’s address to purchase products or services in a setting in which the customer and the merchant are not interacting face-to-face. This is majorly done over the online transactions as you just make the payment after selecting the products.
This has exposed many online retailers to a huge risk as the frequency of CNP fraud is increasing day by day. The best way to curb this problem down is by the use of the authentication. Authentication is achieved when the factor or factors provided by the cardholder match the factor or factors expected by the account issuer. The account issuer can be the issuer of the payment instrument (such as a credit card) or a merchant account that stores payment card information (such as an Amazon online account), among other things.
Sophisticated technology can detect many instances of attempted card-not-present fraud. For example, credit card companies have methods of detecting credit card purchases that are likely fraudulent given the account holder’s typical card usage. When attacks on e-commerce climbs, online sellers must find ways to lower their exposure.
