https://www.fintechfutures.com/wp-content/themes/fintech_child/assets/images/logo/fintech-logo-2.png
  • Home
  • News
  • Intelligence
    • Back
    • Features & Analysis
    • Interviews
    • Reports & Surveys
    • White Papers
    • Case Studies
    • Webinars
    • Podcasts
    • Videos
    • Library
    • Techwire
    • Browse
  • Publications
    • Back
    • Banking Technology Magazine
    • Subscribe to Banking Technology Magazine
    • Banking Technology Magazine Calendar
    • Daily News at Sibos
  • Content Hubs
    • Back
    • Diversity & Inclusion
    • Food for Thought
    • I’m Just Saying
    • The Heart of the Matter
    • ESG Comms Explained
    • State of Play
    • One More Thing
  • Videos
  • Podcasts
    • Back
    • What The Fintech? Podcast
    • Demystify Podcast
  • Awards & Events
    • Back
    • Banking Tech Awards
    • Banking Tech Awards USA
    • PayTech Awards
    • PayTech Awards USA
    • All Events
  • Advertise
  • Jobs
  • More
    • Back
    • About us
    • Contact us
    • Advertising / Media Kit
    • FinTech Futures Newsletter
  • FinTech
  • BankingTech
  • PayTech
  • RegTech
  • WealthTech
  • LendTech
  • InsurTech
  • US Edition
    • Intl. Edition
Banking Technology
  • NEWSLETTER
  • Home
  • News
  • Intelligence
    • Back
    • Features & Analysis
    • Interviews
    • Reports & Surveys
    • White Papers
    • Case Studies
    • Webinars
    • Podcasts
    • Videos
    • Library
    • Techwire
    • Browse
  • Publications
    • Back
    • Banking Technology Magazine
    • Subscribe to Banking Technology Magazine
    • Banking Technology Magazine Calendar
    • Daily News at Sibos
  • Content Hubs
    • Back
    • Diversity & Inclusion
    • Food for Thought
    • I’m Just Saying
    • The Heart of the Matter
    • ESG Comms Explained
    • State of Play
    • One More Thing
  • Videos
  • Podcasts
    • Back
    • What The Fintech? Podcast
    • Demystify Podcast
  • Awards & Events
    • Back
    • Banking Tech Awards
    • Banking Tech Awards USA
    • PayTech Awards
    • PayTech Awards USA
    • All Events
  • Advertise
  • Jobs
  • More
    • Back
    • About us
    • Contact us
    • Advertising / Media Kit
    • FinTech Futures Newsletter
  • Search
  • US Edition
    • Intl. Edition
  • newsletter
  • FinTech
  • BankingTech
  • PayTech
  • RegTech
  • WealthTech
  • LendTech
  • InsurTech
fintechfutures.com


EMV – driving the global eradication of card fraud

  • Written by FinTech Futures
  • 31st July 2013
Jeremy Gumbley is CTO at CreditCall

Jeremy Gumbley is CTO at CreditCall

Authentication, risk management, transaction integrity and cardholder verification, are the four features that define the EMV standard, specified by EMVCo, the organisation that manages the EMV standards and associated compliance processes. These are designed to protect merchants, acquirers and cardholders from fraudulent transactions. However, closing the loop on fraud altogether will be almost impossible without a ubiquitous and global effort, writes Jeremy Gumbley.

Since its inception, EMV has proven to be a key factor in reducing fraud levels. Regions already deploying Chip-based cards have seen a dramatic reduction in fraud, simply because cloning cards is much more difficult compared with the old magnetic stripe standard. Europe is currently leading the way with 81% of cards already EMV-enabled, followed by APAC with 37.2% and Africa and the Middle East, which are in the early stages.

In recent months, the U.S. has been at the root of the EMV discussion. With adoption rates in the early stages, the U.S. is one of the last major economies to make the transition. As a result, it has found itself subject to fraud migrating from mature EMV markets, exposing itself as a point of weakness for fraudsters. In 2012, 20 U.S. states reported an increase in ATM fraud via skimmed cards according to analytics vendor Fico. Meanwhile, EMV in the UK has seen fraud decrease from £169.8 million in 2009 to just £42.1 million in 2012, according to Financial Fraud Action UK. Despite this, the UK is still plagued by skimmers, with attempts to steal card holder data from ATMs tripling, from 2,553 to 7,525 incidents over the past year. Fraudsters can use data from the mag-stripe, which remains on Chip-enabled cards, to then clone cards and use them where mag-stripe payments are still accepted. Therefore, as long regions such the U.S. continue to accept mag-stripe cards to withdraw cash, there will remain a global issue of fraud migration.

The many challenges on the route to compliance are reflected in the staggered adoption rates across different markets and industry experts have begun to question the cost benefits of such a complex implementation. However, there is another concerning trend to consider. Those behind card fraud are also often behind large organised crime units and the money obtained only funds further criminal activities. Therefore, there is the fundamental issue of global social responsibility, which the payments industry is in a prime position to address. By doing this, it can deliver the EMV benefits to merchants and banks, as well as protect cardholders.

Yet a question remains – why has it taken so long for some of the worlds largest industrialised countries to adopt EMV? The cost and sheer scale of implementation, especially for a country as vast as the U.S, is a primary restraint. Both hardware and software are affected, including every device, application and payment system. Some of this may need modifying or replacing completely, while banks must reissue the payment cards.

Rigorous testing and certification of terminals to become EMV ready, as enforced by EMVCo, is a further hurdle. All of this is a time consuming and expensive process that organisations must be prepared for as certain testing stages such as the MasterCard M-TIP (MasterCard Terminal Integration Process) can be particularly laborious. It can take up to sixteen weeks to complete in an EMV mature market, , potentially causing a certification bottleneck. Ultimately, EMV will only truly benefit the industry as whole if all regions embrace the standard and work collaboratively to stamp out fraud. Although the U.S. is making steady progress, it is well-positioned to take advantage of being able to deploy tried and tested approaches to migration. . This unified approach across a global payments chain will ensure that everyone gets the full benefit and protection EMV was designed to provide.

Tags: Cards, Financial Crime & Fraud, Payments CreditCall, EMV Analysis, Industry Comment Worldwide

READ NEXT


  • LatAm paytech Bamboo names Francisco León as its first CEO
  • Plastiq logo
    B2B fintech Plastiq files for bankruptcy, enters deal with Priority
  • top five
    FinTech Futures: Top five stories of the week – 26 May 2023
  • funding
    ICYMI fintech funding round-up: Ballerine, Trébol & more

Leave a comment Cancel reply

-or-

Log in with your FinTech Futures account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Fintech Jobs


Related Content

  • Open banking – supporting businesses during a critical phase
  • PostFinance Switzerland picks FICO’s Falcon for fraud protection
  • Novo
    US banking start-up Novo lands $40m in Series A round
  • Volt
    Volt raises $23.5m to build global instant payments network

Top stories

The hottest news this week

Click here to read

Webinars

Webinar: How banks can strengthen security without compromising on performance

10th May 2023

Webinar: How to power risk decisions faster than the competition

  • 2
12th April 2023

Webinar: Digital lending 2.0 – fulfilling new customer expectations through technology

21st December 2022
view all

Fintech Jobs

White Papers

The ultimate guide to purchasing finance software

12th May 2023

eBook: SME lending – the road to real-time approvals

27th April 2023

eBook: Back to the future – 8 features of fast and future-proof BNPL technology

27th April 2023
view all

Magazine

Banking Technology Magazine May 2023 issue out now

1st May 2023
view all

Reports & Surveys

Survey: Technology trends in wealth management

27th March 2023

Survey & report: The race to ISO 20022

1st December 2022

Research: Tech blockers 2022 – cutting the costs of AML compliance

17th November 2022
view all

Upcoming events

Banking Tech Awards USA 2023

Find out more

PayTech Awards 2023

Find out more

40th Anniversary Summer Party

Find out more

PayTech Awards USA

Find out more

Banking Tech Awards 2023

Find out more

Podcast

What the FinTech? | S.4 Episode 8 | The future of open banking in the UK

11th May 2023

Demystify Podcast: Demystifying embedded banking with Paul Staples

28th April 2023

What the FinTech? | S.4 Episode 7 | Banking Tech Awards USA 2023 special

27th April 2023
view all

Videos

Video: Cognaize on using AI to create actionable intelligence from unstructured data

12th April 2023

Video: Infosys Finacle CEO Sanat Rao on the need for business model innovation in banking

30th March 2023

Video: N26 at FinovateEurope 2023 – The evolution of AI in banking

  • 1
29th March 2023
view all

Content Hubs

Money20/20 Europe 2023 Content Hub

17th April 2023

FinovateSpring 2023 Content Hub

17th April 2023

Dave and Dharm Demystify Podcast

17th April 2023
view all

Media Packs

FinTech Futures Media Pack

Download

FinTech Futures Intelligence Media Pack

Download

Techwire

Tide Encourages UK Businesses to ‘Kickstart’ Global Carbon Removal Movement to Deliver Net Zero

17th April 2023

SureX Launches One-Stop Platform for DeFi Investments and Money Management

17th April 2023

SureX Launches One-Stop Platform for DeFi Investments and Money Management

17th April 2023

Top PH Digital Solutions Firm Globe, PH Trade Department, Singapore’s Proxtera, Partner to Equip Filipino MSMEs With Financial Skills

17th April 2023

Flash News: OKX Announces SUI Jumpstart Listing, OKX Wallet Integrates with Lido

16th April 2023

Flash News: OKX Wallet Announces Blur partnership, Revamps OKX Earn

14th April 2023

Change of venue for 2023 Annual General Meeting

14th April 2023

Simply Easier Payments Releases Intelligent Invoicing, An Enhanced Solution for Agency Invoicing and Billing

13th April 2023
view all

Twitter

FinTech_Futures

LatAm #paytech Bamboo names Francisco León as its first CEO Bamboo believes it is in “a unique position” to capita… twitter.com/i/web/status/1…

26th May 2023
FinTech_Futures

Tackling the triple challenge: digital fatigue, decision fatigue, and scarcity mindset Today’s consumers are navig… twitter.com/i/web/status/1…

26th May 2023
FinTech_Futures

B2B #fintech Plastiq files for #bankruptcy, enters deal with Priority Founded in 2012 and based in San Francisco,… twitter.com/i/web/status/1…

26th May 2023
FinTech_Futures

Top five stories of the week > Anne Boden to step down as CEO of @StarlingBank > Pipe builds “#fintech dream team”… twitter.com/i/web/status/1…

26th May 2023
FinTech_Futures

Why is @Apple taking a bite out of #banking? I am, on the whole, a delighted Apple customer. And as a #fintech spe… twitter.com/i/web/status/1…

26th May 2023
FinTech_Futures

FinTech Futures #Jobs: Despite London being a global superhub for #fintech and the UK being ranked as the European… twitter.com/i/web/status/1…

26th May 2023
FinTech_Futures

#Crypto app @TapGlobalPlc appoints David Hunter as chairman He will replace John Taylor, who will remain on the co… twitter.com/i/web/status/1…

26th May 2023
FinTech_Futures

At FinTech Futures, we know that it can be easy to let funding announcements slip you by in this fast-paced industr… twitter.com/i/web/status/1…

26th May 2023

Nominations now open for PayTech Awards USA 2023

Deadline: June 2 2023

Nominations now open for Banking Tech Awards 2023!

Deadline 21 July 2023

Sign up for the FinTech Futures newsletter

Receive updates straight to your inbox each day - free!

Banking Technology Magazine out now!

Read the latest issue here – the digital edition is free

Fintech Futures
  • About us
  • Advertise with us
  • Contact us
  • Fintech jobs
  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookies Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.