EMV, and the Rise of Card-Not-Present Fraud

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It’s been nearly two years since the EMV liability shift in the US, where electronic chip cards replaced magnetic stripe cards. Despite the initial confusion, customers slowly embraced their new “chip cards” and, soon after, credit card fraud started to decline. EMV had seemingly achieved its intended purpose.

What is EMV?

EMV (EuroPay, MasterCard, and Visa) is a global standard for electronic chip cards and the technology used to process their transactions. With the old “mag stripe” cards, data was permanently encoded in the magnetic stripe. Criminals could easily intercept the data and clone the credit card without the owner’s knowledge.

Today, however, any transaction completed with an EMV card generates a unique code that prevents the card to be used more than once. Any duplicate card will, therefore, be declined because the stolen transaction number won’t be usable again.

When fraudsters stole and used old mag stripe cards, the card issuing bank would typically carry the burden of paying either the customer or the merchant for money lost. With the EMV liability shift, a retailer that fails to install an EMV-ready POS system would be fully liable for the fraudulent charges.

Card-Not-Present Fraud

Because of the unique code generated from each transaction, EMV makes it much harder for criminals to duplicated cards and ring up fraudulent charges. However, the technology provides little protection when transmitting payment information. When a card is swiped in an EMV-ready terminal, the cardholder data has to be delivered to the payment processor. If this process is compromised through malware, memory scrapers or other covert operations, criminals can acquire all the payment data they need from unsuspecting customers for use in card-not-present (CNP) transactions.

So, while EMV makes it harder to duplicate a card, stealing cardholder data opens the option for fraudulent online transactions, where EMV doesn’t come into play.

Remedying the situation

Unsurprisingly, EMV has led to fewer cases of fraud at physical points of sale, and a surge in CNP fraud.It’s therefore paramount that Internet-based merchants implement appropriate security strategies. These include elaborate authentication such as AVS (Address Verification System) and CVV (Card Verification Value) checks, 3D Secure, robust end-to-end encryption, and tokenization. Such measures plug the various gaps in typical online transactions.

Most payment processing companies offer fraud protection services to online merchants, which can be very useful in mitigating CNP fraud. Some, like eMerchantBroker, even go a step further to ensure that retailers get informed of chargebacks and retrievals when they happen, so they can take immediate measures to protect their revenue.

What Now

EMV sure has its positives but, if you’re an online merchant, it’s not the answer to your problems. Managing card-not-present fraud requires constant vigilance, innovation, and execution of the best payment practices to stay ahead of the criminals.… Read the rest

Mutual Funds Investment Vs Real Estate Investment – Which one is better?

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Most of the people nowadays are habitual of investing their money in different forms so as to make their saved money work hard to make more money. Two of the most commonly used arenas of investing money are mutual funds and real estate. Today we are going to compare the two options in terms of risks and returns.

Real Estate Investment: An Overview

Real Estate investments are like assets that give you a number of properties under your name in the long run. These are considered to be less risky and are believed to offer the highest possible returns over time.

  • Real estate investments often grow exponentially. A real estate property bought for Rs.15 lakhs in the year 2000 can be priced around Rs.75 lakhs today. This is the amount by which you can expect your money to grow when you invest in real estate.
  • There are very less chances of property prices dropping down drastically. Though, this is still a possibility which makes it very risky if the prices drop. But the chances are very less.
  • If the money is likely to grow so exponentially by investing in real estate, then why don’t all people in the world start investing in properties today?
  • One reason for not investing in real estate is the lack of funds. For investing in real estate, you need to have a lot of saved funds in hand because properties don’t come for small amount. But the thing is that not many people have such big amounts saved in their accounts that they could invest lakhs in a property that will take years to get heavily priced.

Mutual Funds Investment: An Overview

Coming to mutual funds investment, most people consider them to be very risky. It is said that investing in mutual funds or stocks is no less than gambling with your hard-earned money. Also, the returns you get with mutual funds are less when compared to what you get with real estate.

So, which one is a better option?


We perceive that real estate is less risky than mutual funds but the fact is that both real estate and mutual funds belong to the growth asset category. Their performance majorly depends on the performance of the overall GDP growth.

There are various mutual fund portals available to the public which helps them invest and build a strong portfolio.

How much amount you have to invest?

It is important to note how much saved funds do you have to invest. If you have surplus amount then you can invest in both – buy yourself a property and also buy a mutual fund.

If you are a person who lives on his salary and wants to save little amounts every month, then take an SIP in equity mutual funds.

You can also take a home loan and invest in property so that you will get a home to live in and you can pay EMIs from your monthly salary to pay off the loan. … Read the rest