More Cooperation is Needed to Battle Fraud’s Channel Migration

Monica Eaton-Cardone Covers Cross-Channel Fraud for PaymentsSource

Fraud is a fast-moving phenomenon. As Chargebacks911® COO Monica Eaton-Cardone discusses in her latest guest feature for PaymentsSource, cooperation between different players in the online market is the only way to keep pace.

Card schemes are dropping their requirement to capture cardholders’ signatures at the point of purchase. But, as Monica points out, signatures were never a particularly strong security mechanism to begin with.

“Signatures were always a rather unreliable security method,” Monica explains. “A signature is easy to fake, and inconsistent in-store practices meant due diligence was not always exercised in verifying the signature. Even before the rule change, it was common to walk into a store, make a purchase, sign, and walk out with no need to verify the signature with a form of ID.”

Chip-and-PIN is clearly a stronger security option for card-present retailers. It doesn’t offer much for eCommerce sellers, though, which is why more and more fraud attacks occur online. If we hope to actually reduce fraud, rather than move it, we need consistency.

“We need a consistent set of guidelines for how to handle fraud and chargebacks that is standardized across the marketplace. This demands a coordinated effort between merchants, banks and card schemes if we’re going to have real, significant change.”