Starting your own business has many unique benefits that can't be overlooked. In fact, becoming an entrepreneur often allows you to work from wherever you want, and on your own schedule.
Merchants can now choose to sell their products online, but with that comes the risk of chargebacks and fraud.
One of the most common types of fraud is Card-not-Present fraud. To run your online business smoothly it's essential that you understand how to combat CNP fraud.
Let's take a look at a brief CNP fraud prevention guide.
CNP fraud, also known as "card not present fraud," is the term used for credit card and debit card fraud that occurs when a criminal uses a stolen card number to make purchases online or over the phone.
The thief can either steal the card number directly or obtain it through a data breach. Unfortunately, the overall cost of fraud rose nearly 15% from 2019 to 2021, and much of this was due to CNP fraud.
There are a few different ways that criminals can commit CNP fraud. One common method is called "carding." In this scam, the thief obtains a valid credit card number and expiration date online and uses it to make fraudulent purchases.
Another common technique is known as phishing. In this scheme, the thief sends an email or text message that appears to be from a legitimate company, such as a bank or credit card issuer.
The message asks the recipient to provide personal information, such as their account number and password. The thief can then use this information to commit CNP fraud.
There are many types of CNP fraud that merchants should keep an eye out for. Here we look at two types of attacks:
With direct linkage, there is a common denominator between multiple fraudulent transactions. So, merchants can deduce that transactions with certain criteria are likely part of the same fraudulent activity and decided not to accept them.
With indirect linkage, this connection is much more ambiguous, which makes it incredibly difficult for a merchant to spot the fraud before the transaction has already been approved, at which point there is no way to undo it.
To make matters worse, the value of fraudulent activity with indirect linkage is often significantly higher.
Implementing advanced anti-fraud solutions is recommended to maximize your protection against this type of activity.
Vesta offers proven CNP fraud prevention solutions that enables merchants to minimize fraud and drive higher acceptance of legitimate transactions. By mitigating the damage you incur from this type of activity, you will be far less likely to suffer long-term consequences and drive your top-line revenue.
You can visit this fraud solutions resource to learn more.
We hope that you find the information above helpful to understand the risks involved with CNP fraud and how to overcome them.
From here, you can ensure that the customer checkout experience is optimized while maximizing your revenue.
Would you like to learn more about what we have to offer? Feel free to get in touch with us today and see how we can help you grow your business while stopping fraud.
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