Innovative Retail Technologies

SEP-OCT 2016

Innovative Retail Technologies (formerly Integrated Solutions For Retailers) is the premier source for innovative yet pragmatic technology solutions in the retail industry.

Issue link: http://dig.ismretail.com/i/717795

Contents of this Issue

Navigation

Page 20 of 39

the past 12 months, a figure that's sure to skyrocket as more merchants lock down the physical payments environment through EMV. Yet, just how merchants are thwarting CNP fraud is debatable. In fact, our survey played out the debate right before our eyes. Asked what steps they've taken to prevent CNP fraud, 43 percent of CEOs said they use device identification, 6 percent said 3D Secure, and 29 percent said rules- based filters. LP/AP directors were far more confident in 3D Secure, according to the 36 percent of them who said the technology was in play in their organizations. Nearly 60 percent of LP/AP directors said device identification was their primary anti-CNP- fraud tool, while 29 percent said rules-based filters. CIOs were split between rules-based filters and device identification at 39 percent, while just 17 percent said 3D Secure is their go-to weapon in the fight against CNP fraud. So, what gives? The lack of a cohesive CNP fraud mitigation strategy could be due, at least in part, to a lack of urgency. As previously noted, while just shy of 30 percent of CIOs and LP/AP directors report having suffered CNP loss, 50 percent of executives in each role say they've experienced lost and stolen card fraud, while 36 percent and 33 percent, respectively, say they've been victimized by counterfeit card crime. Until CNP fraud rears its head in force, the front office won't be challenged to create a unified front from which to battle it — despite the fair warning we've received from veteran EMV countries. There's good news in the formation of that front, however. Asked what single payment security-related issue keeps them up at night, respondents across all roles alluded most often to the protection of cardholder data. Protecting Data From Breach While our survey responders say the protection of cardholder data is a top priority, our survey offers more evidence that retail execs are hopeful — or assuming — that someone else in the organization is eliminating the threat. Asked to rank their concern about a data breach on a scale of 1 to 10, CEOs exhibited the least concern at 4.18, followed by CIOs at 5.2 and LP/AP directors at 5.3. There is also considerable disagreement on the most likely source of a breach threat. LP/AP directors and CIOs are far more likely than their CEOs to assume the greatest threats come from within. Here's what we learned when we asked, "If a breach is going to occur, where do you think it's going to happen?" (Respondents could choose all that applied). CEOs: • With our payment processor (39%) • With an employee or someone on the inside (39%) • With our POS software provider (34%) • At the payment gateway (20%) • With our POS hardware (20%) LP/AP directors: • With an employee or someone on the inside (69%) • With our POS software provider (54%) • With our POS hardware (38%) • At the payment gateway (31%) • With our payment processor (23%) CIOs: • With an employee or someone on the inside (67%) • With our payment processor (44%) • At the payment gateway (39%) • With our POS software provider (33%) • With our POS hardware (11%) Security 2016 18 0% 10% 20% 30% 40% 50% Card Not Present Lost/Stolen Counterfeit Employee Theft ID Theft ORC Cash Loss What type of loss has your company experienced in the last 12 months? (LP/AP Response) 0% 10% 20% 30% 40% 50% Card Not Present Lost/Stolen Counterfeit Employee Theft ID Theft ORC Cash Loss What type of loss has your company experienced in the last 12 months? (CIO Response) 0% 5% 10% 15% 20% Card Not Present Lost/Stolen Counterfeit Employee Theft ID Theft ORC Cash Loss What type of loss has your company experienced in the last 12 months? (CEO Response)

Articles in this issue

Archives of this issue

view archives of Innovative Retail Technologies - SEP-OCT 2016