Multi-layer Approach Recommended as Best Practice for Card-Not-Present Fraud Mitigation

Princeton Junction, NJ — The ongoing U.S. migration to EMV chip payments is a move that will benefit the entire payments ecosystem by preventing in-person counterfeit card fraud and securing the card-present payment channel. At the same time, securing the card-not-present (CNP) channel is critical. The EMV Migration Forum today released a white paper to provide an educational resource on the best practices for authentication methods and fraud tools to secure the CNP channel as the U.S. migrates to chip technology.

The white paper, “Near-Term Solutions to Address the Growing Threat of Card-Not-Present Fraud,” was developed by the EMV Migration Forum’s Card-Not-Present Fraud Working Committee and can be downloaded at

“As the U.S. migrates to EMV chip technology, it’s important that the payments industry makes a concerted effort to protect against the redirection of fraud from in-store to the card-not-present channel,” said Randy Vanderhoof, director of the EMV Migration Forum. “No single security mechanism can protect against all possible fraud scenarios. Instead, the best practice to protect against card-not-present fraud is to use a systematic, multi-layered approach using tools that work together to create a successful fraud reduction program. This white paper provides guidance for merchants, issuers and acquirers to construct solutions to strengthen their systems against vulnerabilities and to better protect transaction data from attacks and fraud as part of their overall EMV implementation strategy.”

Techniques and best practices discussed in this white paper to secure the CNP channel include:

  • Authentication methods: device authentication; one-time passwords; randomized PIN pads; and biometrics
  • Fraud tools: proprietary data and transactional data used for fraud analysis and risk management; and validation services
  • 3-D Secure: messaging protocol that enables real-time cardholder authentication during an online transaction
  • Tokenization: technique which replaces card data with surrogate values (i.e., “tokens”) that are unusable by outsiders and have no value outside of a specific merchant or acceptance channel

This white paper provides information from which merchants, card issuers and acquirers can construct security solutions in order to strengthen their systems against various vulnerabilities and better protect systems from attacks and fraud. The white paper also summarizes the impact on the affected stakeholder groups for each authentication method and fraud tool.

The white paper, “Near-Term Solutions to Address the Growing Threat of Card-Not-Present Fraud,” was developed by the EMV Migration Forum’s Card-Not-Present Fraud Working Committeeand led by Rodman Reef, Reef Karson Consulting; Mike Strada, Chase Paymentech; Dennis Gamiello, MasterCard; and Joe Vasterling, Target. For more information on the Card-Not-Present Fraud Working Committee, visit

About U.S. EMV Chip Migration
Commonly used globally in place of magnetic stripe, EMV chip technology helps to reduce card fraud in a face-to-face card-present environment; provides global interoperability; and enables safer transactions across contact and contactless channels. Chip implementation was initiated in the U.S. market in 2011 and 2012 when American Express, Discover, MasterCard and Visa announced their roadmaps for supporting a chip-based payments infrastructure. Acquirer processor readiness mandates to support EMV were established for 2013, with liability shifts for managing fraud risk in a face-to-face environment set for 2015.

About the EMV Migration Forum
The EMV Migration Forum is a cross-industry body focused on supporting the EMV chip implementation steps required for payment networks, issuers, processors, merchants, and consumers to help ensure a successful introduction of more secure chip technology in the United States. The focus of the Forum is to address topics that require some level of industry cooperation and/or coordination to migrate successfully to chip technology in the United States. For more information on the EMV Migration Forum, please visit