U.S. Paid Content Sites Likely to See Same Increase in Credit Card Fraud as Europe

In February I wrote about how the new EMV measures implemented by Visa and MasterCard may lead to increased online fraud. Now, data out

In February I wrote about how the new EMV measures implemented by Visa and MasterCard may lead to increased online fraud. Now, data out of Europe is confirming that suspicion.The European Central Bank recently released its first report on credit card fraud, stating that while chip and PIN technology have decreased physical transactional fraud, there has also been a rise in card-not-present (CNP) fraud. In fact, CNP fraud accounts for half of all credit card fraud in Europe. That’s 648 million ($788 million) in 2010 alone.And 74% of CNP fraud was initiated over the Internet, according to CardNotPresent.com.This is important for many subscription and membership sites, particularly any sites with European subscribers, since most of us with digital products are running CNP transactions. Plus, just as Europe’s advancements in chip and PIN technology have driven most fraudulent activities online, the U.S. market will likely see a similar spike in coming months and years.To learn more about online fraud and how you can minimize it for your paid content site, check out the how-to article on Minimizing Chargebacks on our sister site, Subscription Site Insider. And if you’re new to online payment processing, make sure to check out this handy overview.