BOSTON – Card-not-present (CNP) scams are on the rise, Bank Info Security reports. “Merchants are seeing a substantial uptick in account takeover, thanks to all of the credential compromises,” said Julie Conroy, an analyst and financial fraud expert with Aite. “A large issuer I spoke with said they are now seeing CNP fraud in the U.S. outpacing card-present fraud by 3:1.”

A new study from ACI Worldwide found that CNP fraud rates across the world rose 30% by volume during the first part of 2015, compared to a year earlier. ACI reported that one out of 86 CNP transactions between January and July 2015 was illegal, compared with one out of 114 CNP transactions during the same timeframe in 2014.

“I think we have a perfect storm brewing, in which there is a vast amount of data at criminals' disposal, thanks to all of the data breaches,” said Conroy. “CNP commerce is growing at a much more rapid pace than card-present commerce, and there’s little in the way of disincentive to their attacks.”

Merchants may be slow to implement additional security measures, especially after investing in EMV fraud liability measures. “The big online retailers are using machine learning and neural technology to tighten down risk, to the point where some are saying that they may authorize a customer even if [3-D Secure] tells them it is too risky,” said Gray Taylor, executive director of Conexxus. “We are looking into better risk scoring, and the World Wide Web Consortium (W3C) is working on Web-based authentication that approximates 'in-app' authentication security as another means to reduce CNP. Conexxus is co-chair of this initiative.”