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PULSE Perspectives

Coronavirus Has Heightened the Stakes for Digital Fraud Prevention 
PaymentsSource, August 2020

Following years of development, a technology that targets CNP fraud, called dynamic CVV2 (dCVV2), has entered initial trials. According to PaymentsSource, early results indicate that dCVV2 prevents the majority of CNP fraud. dCVV2 is an issuer solution implemented at the network level. Earlier in the summer, the Secure Technology Alliance released a white paper identifying dynamic security codes as the most promising weapon against e-commerce CNP fraud. The white paper’s conclusion: “Dynamic data is by definition more secure than static data, and when it is layered with other security solutions, such as EMV 3DS or SRC, fraud mitigation is greatly improved."

PULSE Perspective: Expect considerable innovation related to technologies that address CNP fraud over the coming years. dCVV2 looks promising, especially when layered with other fraud detection and prevention measures.  


US Holiday Shopping Season on Mobile Expected to Be Largest to Date, Topping 1B Hours on Android 
TechCrunch, September 2020

App Annie, the leading mobile data and analytics company, predicts the biggest Q4 holiday shopping season on mobile yet- with TechCrunch reporting that nearly 1 billion hours to be spent on Android devices in the U.S., up 50% YoY. App Annie predicts mobile growth will continue in Q4 with a longer shopping season due to October's Prime Day and contraction in the U.S. economy driving consumers to seek deals and promotions for longer leading up to the holidays on their mobile devices.

PULSE Perspective: Every year, fraudsters try to capitalize on holiday shopping season, so issuers may want to share best practices for online holiday shopping with their cardholders.


You've Heard How Consumers Have Turned to Online Channels. Now the Numbers Show It 
Digital Transactions, August 2020

In more proof consumers are turning to online channels, Digital Transactions reports on data from the U.S. Department of Commerce indicating eCommerce dollar volume in the second quarter totaled $211.5 billion, up 32% from the first quarter and 44% from the same period last year. That performance came as total retail sales in the second quarter dropped 4%, leaving eCommerce accounting for a record 16.1% of total retail commerce. Only a year ago that share was just 11%. For debit cards, about 42% of purchase volume and 28% of transactions is occurring in CNP channels.

PULSE Perspective: The increase in CNP volume means a greater share of transactions could be vulnerable to fraudsters. FIs should consider PULSE DebitProtect®, a core service available to all PULSE participating issuers, which uses machine learning and artificial intelligence for fraud decisioning.