Online card fraud up as thieves avoid more secure chip cards for in-store payments

One unfortunate side effect from the use of chip cards for in-store purchases has been an increase in online credit-card fraud.

Hackers have taken the path of least resistance, moving from in-store fraud to e-commerce fraud, according to security experts.

Deterred by the security capabilities of chip cards for in-store payments, thieves have resorted to stealing credit-card numbers and passwords or opening new accounts with false credentials to use in making online payments for purchases, according to recent studies. Botnets also comprise some of the biggest increases in online card fraud.

Chip cards were instituted on Oct. 1, 2015, and since then, e-commerce fraud on U.S. merchants has jumped 42% as of the fourth quarter of 2016, according to a study by research firm Pymnts.com.

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