China faces inevitable card fraud rise

by Gill Montia

Story link: China faces inevitable card fraud rise

A security sepcialist is warning that attempted card-not-present (CNP) fraud is set to soar in China, with a 60% increase already recorded in the country’s airline sector, in the last six months.

Retail Decisions (ReD) has been working in conjunction with Chinabank Payment (CBP), a leading payment service provider in the country, to predict the future for China’s online payments sector.

The market is expected to increase 128% in 2009, to reach 538 billion Yuan or US$78.7 billion, and rise again to 1.67 trillion Yuan or US$244 billion by 2012.

With values increasing at such a pace, Chinese merchants are being warned that they can expect CNP fraud to increase dramatically over the coming years.

In response, CBP is employing ReD’s Shield CNP fraud prevention service, which provides a real-time risk assessment to online retailers.

The firm says it has 30 Chinese merchants using the technology, helping clients to manage international fraud exposure.

Meanwhile, authorities in the US are preparing to prosecute their biggest identity fraud case to date.

Three defendants have allegedly stolen over 134 million credit and debit card details by infiltrating the IT systems of retailers and a payments services firm.