EMV is now in full swing and is expected to heighten security within the payments industry. For instance, EMV technology will lessen the ability for hackers to steal credit card data at card-present transactions in-stores. However, these added security features don’t apply for online shopping. As in-store transactions become more secure via EMV, e-commerce merchants need to find better protection for card-not-present transactions. So what exactly are e-commerce businesses supposed to do? 

 

Here are some fraud preventative actions e-commerce merchants can utilize to protect themselves as well as their customers: 

 

Tokenization
Tokenization is the process of converting a credit or debit card number with a valued “token”. Tokenization will take personal information, such as the primary account number, and replace it with non-sensitive data such as symbols, letters, or numbers. These letters and numbers are then randomly formulated for each transaction to help increase protection and security. Cyber criminals are not able to access card information and use it for fraudulent purposes since they cannot use the tokenized unique codes to replicate credit cards.

 

"Tokenization is the best currently available solution to significantly increase the security around payment card data without having to change anything on the cardholder end," Gregory Nowak, principal research analyst with the Information Security Forum, told SecurityWeek

 

Since the data is tokenized before it is submitted to the merchant, the consumer can rest assured that if hackers were even able to gain access to a merchant’s server, they wouldn’t be able to attain sensitive information. The capability to prevent the card data from reaching the server is especially valuable for e-commerce merchants, as it essentially makes credit card information unusable within their network. 

 

End-to-End (E2E) Encryption
Another fraud preventative measure e-commerce merchants can utilize is end-to-end encryption for their site. With E2E, credit card data is concealed during transmission from checkout through the authorization network and back. Similar to tokenization, the entire credit card number is encrypted with insignificant characters so that the real card data is never discernible and viable for hackers.  

 

Device Fingerprinting
This form of technology collects characteristics from every user interaction such as browserinformation, software versions, and screen size that are all unique to that specific device. All of this information is used to identify any abnormalities that are commonly used for fraudulent purposes. Any suspicious activity is flagged that differs from the distinctive fingerprint and characteristics of each device.

 

IP Proxy Piercing
One way hackers try to hide their identity is via routing the browsing through a IP proxy or VPN. This helps conceal the intents and true origin of a hacker. With the help of IP proxy piercing technology, the genuine IP address of every transaction is uncovered. 

 

IP Geolocation
Combining with IP proxy piercing, IP geolocation aids in pinpointing the customer’s actual locationand the origin of every transaction. 

 

Security will remain a hot topic for years to come, as fraudulent charges continue to remain a major issue. In the mean time, online merchants should use all security options available for full protection from cyber criminals. As EMV technology will help reduce card-present fraud, e-commerce merchants can rely on tokenization, end-to-end encryption, and advanced fraud detection for online on card-not-present transactions.