ON THE RIGHT: Chip technology major tool in card fraud fight
VISA HAS WORKED with financial institutions, governments and merchants for more than 50 years to extend the benefits of electronic payments to hundreds of millions of people around the world.
Together we provide account holders with a more secure, convenient and reliable alternative to cash and cheques.
Security is a fundamental pillar of our business and backbone of our operations. We employ multiple layers of security that work together to help us manage fraud, from anti-counterfeit features to network-based fraud detection, to data security standards, to help keep sensitive information.
We minimise fraud in the payments system by building policies to use technologies and strategies that help stop fraud before it occurs.
We protect vulnerable card data wherever it is stored, processed or transmitted throughout the payments system. We also monitor and manage fraud to ensure we effectively address issues and minimise impact to account holders, merchants and financial institutions.
Visa invests heavily in advanced fraud fighting technologies and continues to develop and deploy new and innovative programmes to mitigate fraud and protect card holders. Visa’s efforts have helped keep fraud rates steady near historic lows, enabling account holders to use Visa with confidencce. In fact, with technological innovations and advances in risk management, fraud rates have declined by more than two thirds in the past two decades. Security is built into every Visa product or service we introduce, from card-based anti-counterfeit measures such as Europay MasterCard and Visa (EMV) chip technology, to network-based fraud detection capabilities.
Visa uses multiple layers of security to prevent criminals from committing fraud. Because VisaNet processes more electronic card payments globally than other networks, Visa has a unique capability to identify fraud on individual accounts and coordinated attacks on multiple accounts across the system, enabling issuers to stop potential fraud before it occurs. Card-based technologies such as EMV chip can help greatly reduce counterfeit fraud. The EMV chip generates a unique code that changes for each transaction and that be validated only by the issuing bank. As a result, stolen payment card data is rendered almost useless at the point of sale.
In countries where chip technology has been used widely counterfeit fraud has declined significantly. Our efforts are centred on supporting the migration to smart cards which contain a chip that not only allows for storing of greater amount of information, but also authentics dynamic data.
Chip technology offers additional protection against different types of fraud like fasification, theft and loss in the virtual or physical world. Changing to chip cards represents a strong measure towards the business of counterfeit cards because in terms of security it drastically reduces the possibility of fraud.
Around the world we have advanced greatly in the migration to chip cards, with more than one billion Visa chip cards issued as of March 2014. We see that regions like Asia, Europe and Latin America are at the forefront of this migration. In addition, chip technology also offers the possibility to include multiple payment and service applications in a single card. Of the more than 240 million Visa chip cards in Latin America, approximately 64 per cent contain multiple applications. The chip card migration is advancing quickly in the Caribbean region. There is a 14 per cent Visa chip card penetration in this region and a domestic acceptance level of eight per cent.
Sophia Antor is Caribbean general manager, Visa International.