Finance Professionals See Chip Cards as Answer to Fraud

Majority of finance experts anticipate that newly introduced chip cards will reduce point-of-sale fraud.

March 27, 2015

NEW YORK – With issuers and retailers preparing to switch to anti-fraud, chip-based credit cards in October, 92% of finance professionals believe the technology will be effective in preventing point-of-sale fraud, according to a new survey.

In its 2015 Payments Fraud and Control Survey, the Association for Finance Professionals (AFP) found that 61% of respondents believe chip-and-PIN will be the most effective authentication method for mitigating fraud. Only 7% saw chip-and-signature as most effective, as reported on CFO.com.

The survey “should serve as a call to action for card vendors,” Jim Kaitz, president and CEO of AFP, said in a news release. “Financial professionals clearly prefer chip-and-PIN over chip-and-signature in the fight against fraud, and they overwhelmingly believe in EMV.”

The AFP survey also found that 62% of finance professionals reported that their organizations were targets of payments fraud in 2014 — a slight increase over the previous two years but still considerably lower than 2009, when a record 73% of companies were subject to attempted or actual payments fraud.

CFO.com also cited another recent survey, by CardHub, finding that all of the major banks are in the process of issuing chip-and-signature cards, with 40% of them also supporting PIN capabilities. Close to two-thirds of retailers plan to also accept chip-and-PIN cards.

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