While using an EMV credit card system could be a good step toward countering fraud, it's not the only avenue POS businesses should be aware of. A 2016 study from Javelin, "Identity Fraud: Fraud Hits an Inflection Point," pointed out that criminals are simply moving away from this card system to attack new accounts instead. This type of fraud is now responsible for 20 percent of total fraud losses, the source claims.
Although credit card issues continue to put financial data at risk in the U.S., the problem also poses threats around the world as American cards are brought into other countries. The report stated that $2.4 billion worth in credit card fraud happens outside of the US, with nearly 70 percent of cases detected "proactively" by insurers.
In an article for Krebs on Security, Brian Krebs noted that the US is relatively late in adopting chip-based cards instead of those that depend on swiping.
"The United States is the last of the G20 nations to move to more secure chip-based cards," he said. "As late as the United States is on EMV implementation globally, the process of merchants shifting to all-EMV transactions is still going to take several more years." He also quoted Visa, which believes that a full half of POS merchants will use this technology before 2017.
Working with reliable credit card processing software gives merchants a means of increasing consumer confidence at their stores. Implementing chip and pin requires a dedicated plan that takes years of oversight as the new system gradually becomes the norm. This new technology also may bring with it new behavior from customers that the business needs to anticipate, such as longer wait times as the card is read.