From the UK, Emma Nash reports on online fraud and steps being taken, including Verified by Visa, to reduce it.
Credit card giant Visa set out some time ago to improve online security but, at the same time, provides the consumer with additional confidence in the security and validity of the transaction. The result was Verified by Visa, unveiled in April.
Using its 3D Secure technology, online buyers enter a password as well as their card details when conducting a transaction on a site that has signed up to the Visa scheme.
In addition, retailers which adopt Verified by Visa will no longer be liable for any “card not present” charge backs, regardless of whether the cardholder has used Verified by Visa or not, something that has been costing unsuspecting consumers dear for many years.
Jon Prideaux, executive vice president at Virtual Visa, insisted that we have to face up to the fact that online fraud happens, and take appropriate measures to stifle it. “This is a real problem. The loss rate is 20 times more than in the real world, and that comes down to the merchants,” he said.