EMV has now been deployed in more than 80 countries around the world. All have seen a significant drop in card-present fraud as a result, but they have also experienced a surge in online card fraud and other card-not-present (CNP) scams.
The payments industry has learned a lot from the first global implementations of EMV technology. The most important one being that EMV is not yet able to protect consumers in the online space. Early adopters of EMV have also found that security measures aimed at heading off rising CNP fraud can disrupt the online purchasing process to the point that cardholders abandon their virtual shopping carts in droves.
Payment card leaders recognized that CNP fraud was likely to rise significantly as e-commerce took off. They sought to address the threat with 3-D Secure. This security protocol was designed to introduce transaction authorization in the online space by means of an online user authentication process, much like a signature or entering a PIN number is meant to do in the real world.