Without strong and up-to-date credit card processing systems, companies of all sizes are putting their information and that of their customers at risk. Thieves and hackers that can break through a seemingly secure system can not only make fraudulent purchases, they can gain access to sensitive data that could wreak havoc on businesses and consumers.
Recent data compiled by the Nilson Report shows that global credit card fraud increased by 14 percent in 2012. Losses totaled $11.27 billion. Within those, 5.22 cents were lost per each $100, which is an increase from the 5.07 cents lost in 2011.
Perhaps a more disturbing statistic from Nilson is that a majority of the theft occurred in the United States. Specifically, 47.3 percent of global fraud happened in the U.S., yet the nation only accounted for 23.5 percent of all transactions.
"Adoption of EMV at the point of sale is the strongest defense against counterfeit cards," Nilson explained in a report about the study. "EMV adoption would not only help U.S. issuers but also issuers in other parts of the world that must continue to put mag-stripes on their cards to accommodate POS terminals in the U.S."
However, the news source added that criminals will pay money to obtain stolen mag-stripe data from EMV card countries to create fake credit cards to use in the U.S.
Organizations that want to ensure quality, secure transactions can partner with a credit card processing service. With current POS software, businesses across numerous industries will keep customers' information protected and hopefully cut down on the amount of credit card fraud.