In this post, Oliver Manahan, Director of Engagement and Operations at EMVCo, explores the rise of remote payment fraud and why it matters. The post also gives insight into how EMV® Technologies can be used to combat remote payment fraud without compromising the customer experience.

Remote payment fraud on the rise

Fuelled by strong and continued growth in e-commerce transactions, remote payment (card-not-present/CNP) fraud is on the rise, impacting merchants globally. Remote payment fraud losses are expected to reach $13.73 billion in the U.S. by 2024, to make up 74% of all fraudulent card transactions.[1]

Remote payment fraud refers to stolen card purchases made via telephone, internet or mail-order. Most remote payment fraud involves the use of card details that have been obtained through skimming, hacking, email phishing campaigns, telephone solicitations or other methods.[2]

Why it matters

Remote payment fraud impacts the bottom line for merchants and puts their customers at risk. In 2022, global merchants lost 3.6% of their e-commerce revenue to payment fraud. On top of this, they typically spent 10% of their annual revenue to manage payment fraud.[3] In the U.S., every dollar lost in fraudulent transactions costs retail and e-commerce merchants $3.75.[4]

Remote fraud and EMV Technologies

Fraudulent in-person transactions have dropped dramatically since the deployment of EMV Chip cards, but while remote payment fraud is significantly on the increase, EMV Technologies bring similar benefits to the online world.

EMV 3-D Secure (EMV 3DS), EMV Secure Remote Commerce (EMV SRC) and EMV Payment Tokenisation technologies can be used separately or together to combat remote payment fraud without compromising the customer experience:

  • EMV 3DS enables the exchange of data, or messages, between the merchant and the issuer to authenticate the consumer and approve the transaction. The data includes information about the transaction, payment method and device. Using this data, issuers can identify and prevent fraudulent card transactions quickly and accurately, without adding unnecessary friction to the payment process that often leads to abandoned purchases.
  • EMV SRC helps combat remote payment fraud by enabling a consistent user experience that reduces the potential for fraudsters to exploit unfamiliar checkout environments.
  • EMV Payment Tokenisation increases the security of digital payments by replacing valuable card data in a transaction with a payment token, which is worthless if stolen.

Fighting remote payment fraud effectively requires more than one approach to security. EMV Technologies work alongside other fraud prevention measures during the transaction lifecycle.

Learn more about how the EMV SRC, 3DS and Payment Tokenisation Specifications support global adoption of fraud-fighting technologies for reliable and convenient online commerce.


[1] Insider Intelligence, US Payment Fraud Losses Forecast 2022, December 2022

[2] US Payments Forum, CNP Fraud Around the World, March 2017

[3] Merchant Risk Council, Merchant Risk Council (MRC) Successful at Fighting eCommerce Fraud Worldwide Now Expanding to Latin America, October 2022

[4] Lexis Nexis, True Cost of Fraud Study, 2022

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