Chip card and their greatest attribute—increased security for in-person transactions—are having an unwelcome knock-on effect: they’re spurring an increase in online fraud, which could accelerate in the coming years. Juniper Research, a financial services research firm, said in a recent report that it expects global online fraud to skyrocket to $25 billion in 2020, thanks in part to the transition to chip cards. Online fraud only amounted to $2.9 billion in 2013, according to the Aite Group. Because chip cards are more secure than magnetic stripe cards, fraudsters and hackers focus more on online fraud after a country shifts to the standard. Canada has experienced dramatic jumps in e-commerce fraud after moving to chip cards.
By: Ian Kar
Read more on: Quartz
Marina Burghard writes for Canadian Fraud News about fraud-related cases, whistleblower, jurisdiction, identity theft, consumer protection, etc. – essentially about scams and how to protect yourself against this kind of fraudulent criminal behavior. She holds a Master’s degree in Political Science where her interest in criminology grew. Besides fraud, Marina’s scientific interest lies in terrorism, extremism and how to deal with it as a society.