October 2015 will be an important deadline for U.S. retailers to upgrade their point-of-sale terminals to EMV-compliant machines, or else they’ll be held responsible for fraudulent transactions.
EMV greatly reduces the impact of in-store fraud, as the new cards with embedded chips generate a unique token for each transaction, making them difficult or impossible to counterfeit. But this suddenly makes the digital world, where only the card digits and CVV are used, and the chip cannot help, a much more lucrative target for fraudsters than in-store retail.
By almost all estimations, the U.S.’s move to EMV will lead to massive increases in ecommerce fraud, perhaps even more so than countries like the U.K. and Australia.
Here’s more from online fraud prevention firm Trustev.