A Surge in Online Shopping Means a Higher Risk for CNP Fraud – How Do You Know Your Business Is Protected?

eCommerce, while still accounting for a small percentage of the global payments segment, is growing at a steady pace.

In addition to the ease and convenience of shopping online, consumers have grown more confident about making purchases over the internet, believing that advancements in digital security will protect their personal information from falling into the wrong hands.

The irony here is that as more consumers go online to shop, more opportunistic hackers are also going online—to commit fraud.

This can translate into big headaches for merchants, who are typically left with the burden of proving CNP (card not present) fraud.


Today, CNP fraud accounts for nearly half of all fraudulent card usage.

Why? Because cybercriminals are smart and adapt quickly to new security solutions.

Ever wonder how we went from the old magnetic stripe credit and debit cards to the new chip cards? Simple: some hacker figured out that those magnetic stripes contained static data that was surprisingly easy to steal (and clone) if you had the right tools.

Enter EMV chip cards, which provided a solution for improving point of sale (POS) security.

Not only did they eliminate the problem of static data, but they also brought along sophisticated encryption technology that makes them nearly impossible to clone.

Which brings us back to CNP fraud.

Even though a rise in online fraud was anticipated following the introduction of EMV technology (meaning businesses should have taken steps beforehand to assess and improve their online security measures) major retailers like Target and Home Depot still fell victim to large-scale security breaches.

And those are the big guys.


What’s the solution? Not just one strategy but several.

You may hear it called a “layered” approach.

Essentially, merchants and payment providers are coming at CNP fraud with an arsenal of high-tech solutions and strategies designed to enhance security throughout the entire payment journey.

These include:

  •      Device authentication standards like 3D Secure

3D Secure provides an added layer of security by asking users to create a personal code that must be verified before completing an online purchase.

  •      Tokenization

A “token” is piece of non-sensitive data that replaces a piece of sensitive data, such as a bank account or credit card number.

The one-time-use token retains the information but with a unique code that keeps it safely encrypted from hackers.

  •      Multi-factor Authentication

This involves the use of two or more credentials (pieces of information only the cardholder would know) to ensure the card being used to make a purchase actually belongs to the cardholder.


A surge in online sales is a good thing—as long as your business is secure.

Cybercriminals are smart and getting smarter—but the key to staying one step ahead of them is never letting your guard down.

Are you doing everything you can to protect your business?

If not, it’s time to call the experts at MyWatchmen.

We want you to have the most secure network you can to protect sensitive cardholder information and avoid becoming a victim of CNP fraud.

To make sure you do, we’ll start with a thorough analysis of your merchant accounts to identify areas that might need improvement—including your payment processing technology and security.

We analyze and verify all of your networks on a regular basis and maintain the latest security standards for your accounts.

Bottom line: we know you have a million other things to do besides worry about online security, but we also know what could happen if your security is compromised.

Let MyWatchmen make the phone calls and take care of all the details so you can focus on running your business and growing your bottom line.

Call 1-888-256-2845 today or schedule a time to meet with us.

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