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US EMV migration: The Importance of 3D Secure

A new white paper has been announced titled “EMV is Not Enough: Considerations for Implementing 3D Secure.” The paper considers the impending US EMV migration to Europay, MasterCard and Visa (EMV) chip to combat fraud, but concludes that there are additional steps issuers must consider to mitigate fraud risk.

The report concludes that there are clear lessons to be learned in the US from the UK’s introduction of EMV – and the resulting rise in card-not-present fraud. The paper discusses how the increase in card-not-present fraud coupled with the growth of e-commerce should lead issuers to consider deploying a risk-based authentication on the 3D Secure protocol.

A circular chart showing US Issuer Fraud Losses

US Issuer Fraud Losses

3D Secure, the paper indicates, is a robust and effective method for providing information to issuers and online merchants to combat fraud while simultaneously providing a smooth and interruption-free shopping experience to cardholders.

“The introduction of EMV in the US will go some way to reducing fraudulent transactions, particularly in the card-present space,” says Jonathan Hancock, director of fraud management at TSYS. “However, fraudsters are constantly striving to stay one step ahead, and with the growth in e-commerce transactions, implementing 3D Secure can reduce losses resulting from fraudulent card-not-present activities.”

The paper outlines the benefits of using EMV and 3D Secure together, including greater fraud protection for all stakeholders – card issuers, merchants and consumers. It ultimately concludes that while fraudsters’ methods will continue to evolve, these two solutions deployed together offer the strongest protection available for reducing card fraud.

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