Card-Not-Present Fraud on The Rise – Finance Industry On Notice

Card-Not-Present Fraud on The Rise – Finance Industry On Notice

Card-not-present fraud is expected to hit $6.4 Billion by 2018. While EMV chip and pin cards, with their immediate authentication, use a great technology for card-present transactions, consider that the technology is over 20 years old and is just being adopted in the US this year. In fact, while international merchants sing the praises of the chip-and-pin cards, they are only really effective for card-present transactions. Card-not-present payment transactions run through more varied acceptance channels than ever and leave a trail of sensitive information in every data environment they touch. Meanwhile banks are escalating the fight with merchants as to who is responsible for fraud for both card-present at the point of sale and card-not-present for online transactions.

At the root of this battle is the simple fact that data theft and the resulting payment fraud continues because organizations house toxic payment and personal data. Most organizations cannot afford to fight the fraud battle on all fronts at once. Tokenization removes toxic payment data from your environment at the point of transaction, so when—not if—you are breached, data thieves can’t steal what isn’t there.

Inadequate Solutions Determine Your Fate
Red blinking lights and beeping alerts from expensive security software give you a false sense of security as you continue to store and transmit the data that ruins reputations, sends disgruntled customers to competitors, and can potentially send stockholders to initiate major sell offs. Tokenization technology has existed for quite some time, but has used other aliases like hashing. With the TokenEx Cloud Security Platform, the token that replaces an account number in your environment has no value to a data thief, while your payment data is securely housed in 100% PCI-compliant data vault. Even though the payment data is replaced in your internal systems, you are able to use the tokens to extrapolate all of the “Big Data” analytics that you would normally use for building customer metrics.

Mobile is Reality – How is it Being Secured?
Millenials have grown up using mobile smart phones and apps. They are the largest consumer population and want to pay for products and services with mobile devices as well as send their friends money with ease and at low rates. Business Insider predicts mobile payments to hit $900 Billion by 2019. To safeguard all those transactions, mobile apps have the power of using a device-based token for payment card information, as well as providing tokenization at the point of transaction. By tokenizing the mobile payment, merchants and third-party vendors only handle tokens, not payment card information, thus reducing risk of data theft and the costly scope of PCI compliance.

TokenEx offers Custom Tokenization That Meets Your Needs
Efficient data security is the top requirement in today’s financial world. With so much money and valuable information coursing through multiple acceptance channels, it is paramount to secure that data in the case of a breach. Financial companies will continue to be the focus of breaches, because they are the money stewards of the world. When even the most sophisticated institutions can fall prey to government-sponsored hackers, the only way to secure data is to remove it and replace it with tokens. TokenEx custom tokenization allows organizations of every size to secure their sensitive data across every vulnerable channel. CEO’s rest easier at night when they know that a data breach is no longer an event that can compromise their business. Tokenization is a proven solution for securing all types of sensitive data and TokenEx is tokenizing sensitive data for financial institutions worldwide.

Visit for more information on how tokenization will change the way your financial institution handles data security. You Can’t Steal What’s Not There! Follow us on Twitter and LinkedIn.

Topic(s): payments , data security , tokenization