Interac Association, operator of a national Canadian payment network, reported a continued drop in fraud losses as the country’s conversion to the EMV card standard nears completion.
In a press release February 25, 2016, the Toronto-based organization reported that fraud losses from skimming, in which card data is stolen from the magnetic stripe, for financial institutions that issue Interac debit cards dropped for the sixth year in a row to a record low of $11.8 million, down 27% from $16.2 million in 2014. (All Canadian dollar figures.)
Canada began its so-called chip-and-PIN conversion in 2008. Today, 100% of Canadian debit cards and automated banking machines, or ABMs (ATMs in the U.S.), have been converted to the chip card standard, in addition to 99% of POS terminals. Interac reported that most fraud typically happens in situations where the cardholder uses the card’s back-up magnetic stripe because the merchant or ATM wasn’t able to read chip cards.
Direct Connect’s CEO, Matt Clyne, agrees that, “EMV technology is the key to reducing fraud. As the U.S. becomes compliant with EMV standards, we can expect similar reductions in fraud here in the states.” While the U.S. has lagged behind Canada’s conversion to EMV technology, we are proud to say that our Direct Connect Gateway is one of the few that has been fully EMV certified.
Interac’s press release is here: http://interac.ca/en/interac-debit-card-fraud-losses-plummet.html