There is a strong case for the techniques introduced to provide greater security for online banking to be extended to protect the e-commerce channel. At a time when large-scale IT projects are sitting on the back-burner due to the economic situation, the extension of best practice techniques developed for online banking security to online shopping seems sensible.
Indeed, while many banks may have been content to absorb the losses created by fraudulent online transactions in the past, they are now operating in a very different environment. Protecting the bottom line and instilling confidence in customers in order to boost customer retention levels are now the new priorities.
In response to the CNP fraud challenge, banks need to ensure they implement effective security processes which are able to significantly reduce the risk associated with CNP transactions. The UK’s migration to EMV and the resultant fall in face-to-face and ATM fraud reassured the public that banks were investing in solutions to reduce payments risk. A similar investment in reducing CNP fraud is essential if banks want to retain the confidence of their customers.