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