Rippleshot Blog

Key Issues and Challenges for Debit Card Issuers

Posted by Kaleigh Simmons on 23, Aug, 16

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No surprise here. Pulse Network’s 2016 Debit Issuer Study cites an across the board increase in fraud losses for all types of financial institutions from 2014 to 2015. But where’s it all coming from? How will mobile payments impact the debit market? And what sort of growth is expected over the coming years? We cover it all ahead:

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Topics: EMV, Fraud

The Evolution of European Card Fraud

Posted by Sid Khaitan on 16, Aug, 16

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“Those who cannot remember the past are condemned to repeat it”.

This quote couldn’t hold more true when it comes to the EMV liability shift in America. Cybersecurity experts are perplexed regarding the future, scrambling to find clues in order to predict the who, what, when, and why of the EMV roll-out. What they don’t know is that the answers may actually lie within the past, or across the Atlantic Ocean. Most Americans are quick to forget that we were actually one of the latest to adopt the EMV standard, following suit after Africa, the Middle East, Asia, Latin America, and almost all of Europe. So when it comes to painting a picture of the aftermath that will result from widespread adoption of EMV protocols, why don’t we examine our international counterparts more closely? Join us as we discuss European history surrounding EMV adoption, fraud trends that will carry over to America, and the implications of widespread EMV implementation in our latest infographic: The Evolution of European Card Fraud.

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Topics: EMV, Fraud, Cybersecurity, E-Commerce

The “Brief” History of Chip-Card Hacking

Posted by Sid Khaitan on 10, Aug, 16

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Chip-card hacking has most likely been around longer than you think. Commonly known as the EMV standard, which represents the card network consortium of Europay, Mastercard, and Visa, the chip-based card technology has been widely adopted in virtually every global market (except for the U.S. until recently). EMV was born in 1994, when the three international payment systems sought to develop a global chip specification for payment systems, and the first production version was released in 1996. By embedding a secure chip into a plastic payment card, EMV technology enhances the overall security of debit/credit cards, overshadowing the effectiveness of the traditional magnetic stripe-and-swipe. In addition to replacing the outdated signature with a more secure PIN (personal identification number), the chip card utilizes cryptographic processing to create an ID that is unique to every transaction, as opposed to displaying sensitive account and payment information. However, the common misconception is that EMV is the “be all, end all” of payment security- this couldn’t be further from the truth. Find out how chip-card hacking has evolved from a replacement of internal hardware to sophisticated ATM shimming software as the Rippleshot Team explores the history of chip-card hacking.

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Topics: Compromises, EMV, Fraud, Cybersecurity

The Two Long-Term Consequences of Data Breaches

Posted by Sid Khaitan on 3, Aug, 16

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We have a good idea of the short-term consequences of data breaches- lawsuits, chargebacks, etc. But what about the long-term? A recent research report published by Claire Greene and Joanna Stavins of the Federal Reserve Bank of Boston sought to find a conclusive answer, leveraging consumer perceptions surrounding Target’s data breach as a case study. By examining longitudinal data on 1,908 US adults from results of the Survey of Consumer Payment Choice (SCPC), the report took advantage of a naturally ripe environment for experimentation, as some respondents were asked to rate payment instrument security before the Target data breach became public knowledge, and others answered the survey after news of the breach became widespread. Although the research has merit in identifying the inelastic behavior of consumers regarding payment instrument usage, it fails to address how data breaches contribute to costly card-reissuance and false-positive declines for banks and credit unions.

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Topics: Compromises, Data Breach Statistics, Fraud, Cybersecurity

A Deeper Look into Class-Action Data Breach Lawsuits

Posted by Sid Khaitan on 29, Jul, 16

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The aftermath of headline-grabbing data breaches at deep-pocketed retailers is almost always characterized by litigants of all sizes lining up to seek reparation for their legal injuries. These litigants can come in the form of disgruntled financial institutions, who demand compensation for breach-related expenses, or unhappy consumers who have suffered from theft of personal/ financial information and unauthorized charges on their accounts. Although consumer class-action lawsuits are a dime a dozen, they typically do not fare well in court, as courts generally conclude that their losses are covered in full by banks. On the other hand, financial institutions have a much easier time proving the costs associated with data breaches, such as card reissuance and reimbursement on fraudulent transactions. Follow along as we discuss the most recent data breach lawsuits including Target, Home Depot, and Wendy’s, and their effect on consumers, financial institutions, and retailers.

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Topics: Compromises, Lawsuits, Data Breach Legislation, Fraud, Cybersecurity

2016 Trends in Global E-commerce Fraud

Posted by Sid Khaitan on 21, Jul, 16

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By 2019, the global e-commerce market is predicted to be worth US $2.4 Trillion. In short, e-commerce is growing at an unforeseen rate. Unfortunately, it also means that online payment fraud, a notorious companion, will tag along for the ride. In their latest research report, Fraud Trends 2016, WorldPay highlights the key issues at the fore of global risk and fraud prevention, such as perceptions regarding mobile fraud, the use of social media in risk mitigation, and the inability of companies to effectively leverage data.

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Topics: Compromises, EMV, Fraud, E-Commerce

Card Fraud Instances Rising, Even in Countries with EMV

Posted by Kaleigh Simmons on 14, Jul, 16

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The United States is often the target of most studies on widespread card fraud, due to its slow crawl to implement EMV technology. And because of this, it would be fair to assume that the United States is the only country uniquely experiencing significant levels of fraud and the ripple effects of skeptical customers and loss of revenue. But, that’s actually not the case. ACI Worldwide and Aite Group’s Global Consumer Card Fraud report sheds light on the issue across twenty nations, and provides a look into what even long-EMV compliant countries like Canada and Mexico are experiencing, decades after the implementation, and how consumers are reacting to it.

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Topics: EMV, Fraud

A Timeline of Fraud: 2015-2016

Posted by Sid Khaitan on 6, Jul, 16

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The landscape of fraud between 2015 to 2016 is best characterized as uncertain and dynamic. As government institutions such as the CFPB and FFIEC begin to play a bigger role in cybersecurity regulation, it has yet to be seen what data security protocols will be required of financial institutions. Also, pending legislation in Congress surrounding data security has the potential to determine federal standards of information security for merchants. Finally, with back-and-forth lawsuits between retailers, payment card networks, and issuers over disputes regarding EMV compliance and liability shift, nobody is exactly sure who will come out on top.


At Rippleshot, we understand how difficult it can be to juggle so many moving parts and develop actionable insights from them. That’s why we created a timeline for you to get up to speed on recent developments in card fraud and payments security.

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Topics: Compromises, Industry News, Rippleshot News, Lawsuits, Data Breach Legislation, EMV, Fraud, Cybersecurity, Regulation

What's Going on With All These Chip and PIN Lawsuits?

Posted by Kaleigh Simmons on 28, Jun, 16

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Yesterday, news broke that supermarket chain Kroger had filed a lawsuit against Visa due to disagreements over chip and PIN transactions. If this is starting to feel like an echo chamber, it’s because Kroger is far from being the first merchant to sue a card network over the EMV conversion. In March, a small grocery chain and liquor store in Florida filed an antitrust lawsuit against all four card networks and a dozen banks. This was followed by Wal-Mart filing a lawsuit against Visa in May, and Home Depot filing one of their own against Visa and MasterCard in mid-June. What’s the issue behind all of this litigation? Follow along as we break each one down.

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Topics: Lawsuits, EMV, Fraud

The Data Security Act of 2015- What does it mean for banks and merchants?

Posted by Sid Khaitan on 15, Jun, 16

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A fiery debate has resurfaced between financial institutions, merchants, and consumer groups regarding the Data Security Act of 2015. The bipartisan bill introduced to Congress as H.R. 2205 by Representatives Randy Neugebauer and John Carney on May 1st, 2015 explicitly states two purposes: “to establish strong and uniform national data security and breach notification standards for electronic data” and “to expressly preempt any related State laws in order to provide the Federal Trade commission with authority to enforce such standards for entities covered under this Act.”

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Topics: Industry News, Rippleshot News, Lawsuits, Data Breach Legislation, EMV, Fraud, Cybersecurity