If you type "data breach" into Google, you'll get thousands of results, including news stories about high-profile breaches at Target, Barnes and Noble, Home Depot, and Wendy’s. Data breaches are top of mind for consumers, but merchants are also concerned...with good reason. The 2014 JP Morgan Chase breach affected 76 million households and seven million businesses.
Consumers are worried.
A recent Unisys study found 59% of consumers are afraid of having their credit card data stolen or abused. While the EMV chip card technology has helped alleviate the risk of fraud with Card Present transactions in POS devices, the Card Not Present (CNP) fraud is skyrocketing.
In Europe, the CNP fraud rate rose from 25% in pre-EMV 2004 to 64% in 2010, as reported by the European Central Bank. This substantiates why 49% of consumers feel vulnerable to security risks when transacting online, as reported by Kaspersky Lab.