An increase of card-not-present fraud in HSBC: causes & implementations

Abstract

The boom of electronic commerce technologies in recent years has drastically increased the demand for an effective electronic method to pay or to be paid. That requires the payments ecosystem has to continuously evolve and change to provides users a safe, convenient and effective tool. Therefore, eCommerce merchants not only focusing mostly on the point of transaction and session and behavioral monitoring, validating the identity of a user before any transaction, but also pressing role in preventing CNP fraud because it is predicted that retailers will lose around $130 billion in digital CNP (Card-not-Present) fraud between 2018 and 2023. CNP fraud is a topical question of financial providers. As an international bank and a top leading credit card issuer in Vietnam, HSBC has faced with CNP fraud increase from beginning of 2016, which not only pose a threat on operation risk but also in reputation risk of the Bank. This is the reason why the author decided to choose the problem “An increase of card-not-present fraud in HSBC: Causes and implementations” as a thesis topic to investigate and recommend its solutions.