Adam Dolby VP of Business Development Encap Security

Julie Conroy Research Director of Retail Banking Aite Group

For a long time, EMV (chip-and-pin) technology was believed to be the savior to a U.S. card industry suffering $11.27 billion in fraud losses. Recent attacks have resulted in millions of credit identities flooding the underweb, and U.S. credit card issuers, merchants and banks once again move to adopt EMV cards. But let us take a lesson out of Europe’s experience where online fraud doubled after EMV adoption as attacks against the plastic card shifted to card-not-present (CNP) transactions such as online shopping. 

The lesson learned: fraud does not simply disappear; it just moves to another channel – one where it is even easier to commit fraudulent transactions.

In a recent webinar, Julie Conroy (Research Director of Retail Banking Aite Group) and Adam Dolby (VP of Business Development at Encap Security) explored the following:

1. The current threat environment with an analysis of recent breaches;
2. Combating breaches at all touch points in customer relationships where fraud attacks can happen – from call centers, online accounts, ATM to POS terminals– across all devices and channels;
3. Why solutions like EMV, OTP, SMS, token hardware aren’t the final solution; and 
4. How you can reduce fraud and costs while increasing convenience and security for customers and satisfying regulatory requirements.

“Think of combating fraud like getting the flu shot. The flu vaccine doesn't eradicate the flu, but if you get the flu it will go away faster and there won't be as much pain," said Dolby. "The same holds true for card security and the customer. If you get hit with a breach, it is imperative to make the data unusable and limit the use of the card, or in some cases take it away all together. Limit the use of the data that may be stolen. If you devalue the information, you’ve won the battle.”

“The bad guys are going to get in. Attackers will always find a way in where there’s enough reward. If we only react when there’s a breach, rather than stop them before it starts, we’re giving away the upper hand,” added Conroy. “Effective, successful protection requires scalable, nimble solutions that provide layered strategies, seamless consumer experience across all channels and well-designed feedback loop that adjusts and scales with breaches over time. Fraud prevention is a journey not a destination.”