Could EMV Risk Be Headed Your Way?


Could EMV Risk Be Headed Your Way?

The Emerging EMV Risks for Merchants

A recent article highlighted potential EMV risks, drawing our attention with its projections. The forecast suggests that as EMV standards draw near, U.S. merchants, particularly the smaller ones, could face annual fraud losses stretching from tens to hundreds of millions of dollars, protections they currently enjoy notwithstanding. The article further suggests that, by October 2015, a liability shift by major card networks to enforce the Europay-MasterCard-Visa (EMV) chip card standard could expose merchants who haven’t updated to EMV-capable point-of-sale terminals to new risks of counterfeit fraud. Those merchants could then find themselves responsible for fraudulent transactions in their stores for the first time.

Counterfeit Card Losses and the Push for EMV Compliance

Interestingly, the article notes that that “losses due to counterfeit cards in the U.S. run into the hundreds of millions of dollars annually and have doubled in the past seven years as other markets, including Canada and Mexico, have moved to EMV.

The Increasing Vulnerability of Non-EMV Compliant Regions

In other words, as other countries and territories tighten up their protection with EMV, those places left without it become even more vulnerable to credit card fraud. As more regions adopt EMV compliance, the risk is likely to escalate, particularly for businesses and territories that lag behind — with the article emphasizing that small merchants stand out as especially susceptible, increasingly becoming “softer targets.”

Take Proactive Steps With AVP Solutions

So make sure you contact AVP Solutions today — well before 2015, that is! Ensure you thoroughly review your security measures to fortify your defenses against present fraud threats. Take full advantage of the comprehensive security features that AVPS provides with their retail solutions. Act now; don’t delay until 2015, or even December, to enhance your protections.