In the first half of 2015, an astonishing 245,919,393 data records were compromised, either by being stolen or lost, according to a recent report by Gemalto. Of those, 161,577,865 were breached from either the healthcare or government industries. A full 80% of the incidents occurred in North America. The next largest geographical region was Europe, coming in at only 10%.
For CNP merchants, the type of breach plays a role in the ensuing processing headaches. With 53% of the breaches resulting in identity theft, merchants can expect to see either an increase in “potential fraud” declines upon authorization, or, as identity thieves are establishing credit cards in another’s name, they will eventually see a spike in “did not authorize” chargebacks.