Feb 1, 2017

Those annoying new chips moved credit fraud online

Martin Meissner / AP

Nearly half of the fraud committed in 2016 was "card not present" (CNP) fraud; it was either committed online or in physical stores that don't have chip software activated yet. LifeLock reports overall fraud was up 18% last year, per the WSJ.

Wasn't chip technology supposed to make transactions more secure? Although it may take longer in store, chip technology brought losses from existing-card fraud down 30% from 2013 since chips are nearly impossible to clone. But 64% of storefront merchants still don't accept chips — that's because there have been massive delays in on-boarding retailers' software for the chip readers, since retailers and their hardware must be certified in a long queue, per CBS. Plus, after October 1 of 2015, the burden of paying for fraud costs transferred from financial institutions to the storefronts themselves.

Why it matters: Consumers are still bearing some hefty costs: identity theft and credit card theft cost 15.4 million consumers $16 billion in 2016 according to the study.

In the meantime, companies are investing in tokenization programs to protect information and combat cloning card fraud that comes from swiping cards (think Apple's Apple Wallet and MasterCard's Masterpass).

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Situational awareness

Photo: Drew Angerer/Getty Images

Catch up on today's biggest news:

  1. Scoop: New White House personnel chief tells Cabinet liaisons to target Never Trumpers
  2. Trump misrepresents 2020 Russia briefing as Democratic "misinformation"
  3. Bernie Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"
  4. Nearly half of Republicans support pardoning Roger Stone
  5. Scoop: Lyft acquires cartop advertising startup Halo Cars

Sanders takes aim at Bloomberg: "Trump will chew him up and spit him out"

Photo: Mario Tama/Getty Images

Bernie Sanders told CBS "60 Minutes" that he was surprised by Mike Bloomberg's lackluster performance at Wednesday's Democratic debate.

What he's saying: "If that's what happened in a Democratic debate, you know, I think it's quite likely that Trump will chew him up and spit him out."

Scoop: Lyft acquires cartop advertising startup Halo Cars

Photo: Drew Angerer/Getty Images

Lyft has acquired Halo Cars, a small startup that lets ride-hailing drivers earn money via ad displays mounted atop their cars. Lyft confirmed the deal but declined to share any details.

Why it matters: Ride-hailing companies are increasingly eyeing additional ways to generate revenue, and Lyft rival Uber has been quietly testing a partnership with New York-based Cargo that gives it a cut of the advertising revenue, as I previously reported.