Common Types of CNP Fraud to Watch Out ForMarch 30, 2016
Fraudulent activity for card-not-present (CNP) transactions has been sharply increasing. According to an article from pymnts.com, credit card fraud is expected to more than double by 2018, reaching $6.4 billion. The enhanced security of EMV chip cards have influenced fraudsters to focus on “easier” CNP transactions. Plus, with the US markets finally adopting EMV technology, cross-border credit card fraud is expected to increase as well. [more] To ensure your customers’ information is safe from fraudsters, revisit your security strategy to make sure you have plans to address the following types of CNP fraud:
To check whether stolen card info is still valid, a fraudster will make a small purchase through a website that uses real-time transaction processing. If the purchase is successful, they know the info is good and the card can be exploited for larger purchases.
Phishing usually happens through e-communications like email or instant message. The fraudsters pose as a legitimate business where the victim has an account in order to obtain information that can give the fraudster account access (information such as passwords, answers to security questions, etc.).
Malware (MALicious softWARE) discreetly runs on computer systems to monitor user behavior gather sensitive data – including payment credentials.
Account theft can occur through phishing, remote access Trojan viruses, or other means. Once a fraudster has taken over an account, they can steal personal and payment information, make fraudulent purchases both online and in-store with counterfeited cards.
Fraudsters are able to subvert many types of security systems through location masking, which hides their true location and computer characteristics (IP address, operating system, browser type, etc.).