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approaches. The most low-tech practices like examining Im p roved fraud mitigation
signatures and photo IDs – while imperfect – remain
simple and effective deterrents to scammers seeking low- It is likely that fraud incidents similar to those experienced
hanging fruit. by other countries will play out in the United States as we
migrate to EMV technology. It's also likely we'll face some
As for CNP merchants, it is likely wise to prepare now for surprises – all of which make it crucial to shore up the
a wave of threats. Simple and proven protocols such as fraud mitigation tools we already have in both CP and
requesting card verification value and card identification CNP environments. We must put tried-and-true protocols
number codes should be a given. Gateways should in place now and support the innovations of the future.
authenticate Internet Protocol addresses.
For ISOs, the task at hand is to fully educate and support
In France and the U.K., the surge in CNP fraud was merchants during the transition phase and beyond,
brought largely under control by moving to 3D Secure ensuring they (and their cashiers) understand and
practices such as remote PIN entry. 3D Secure is a payer embrace the new processes while adhering to security
authentication protocol that comprises Verified by Visa fundamentals. EMV adoption will ultimately strengthen
and MasterCard SecureCode and enables cardholders to fraud reduction in the United States, but there will be
create PINs that can be confirmed by issuing banks during bumps in the road.
online transactions.
Awareness, education and vigilance will help us all make
From biometric fingerprinting tools for home PCs and the transition as smooth as possible.
mobile devices to "social fingerprinting" solutions that
authenticate consumers by analyzing their social data
from sites like Facebook, new solutions for verifying CNP Cliff Teston is co-founder, Chief Executive Officer and President of
practices will continue to emerge as online transactions Signature Card Services. He has a long history of leadership and
become the preferred target for crooks. innovation in all aspects of the ISO/MSP industry. Contact him at
cteston@signaturecard.com.

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