If you look around you'll see reports about how the EMV liability shift back in October 2015 started to take the fraud trend to online transactions rather than card-present, in-store transactions. This is because the added security of the EMV chip makes it more difficult to steal credit card information during a “dipped” credit card transaction. And as we know crime is greatly based on convenience, fraudsters are more likely to start looking online to steal credit card information since keying in cards does not contain the same security measures as utilizing the EMV chip.
It’s important to note that there really was no lag time between the liability shift and the increase of online fraud. This is because essentially when a new security measure comes out, it is meant for keeping the fraudsters at bay. In the same way criminals are always coming up with new ways to scam people and technology out of personal and private information, we are constantly finding new security measures to prevent these acts from occurring. And technology is just barely keeping up. When it comes down to it, it’s simply people competing with other people - albeit some of those people are trying to protect merchants and consumers while others are looking to scam them.
It’s also important to note that while all of this is taking place, consumers still favor convenience over security - and since consumers are demanding a more personalized experience now more than ever, a convenient and frictionless transaction is key to getting that sale. Consumers really don’t take on much of the fraud burden compared to the merchants and banks themselves, so they can afford to have security come second or even third in their purchasing priorities. That being said, it will continue to be up to banks and merchants to stay on the cutting edge of technology to keep up with the fraudsters out there who hope to have you beat. Getting consumers on the bandwagon (i.e. chip card technology) is a slow-moving process because it’s not their main concern. A merchant’s best bet is to stay on top of this technology and other trends and realize it will take time to move consumers over but ultimately worth it in the end.