Card-Not-Present (CNP) Fraud occurs when stolen card information is used to make remote purchases where physical presentation of the card isn't required, such as online, phone, or mail order transactions. This type of fraud has increased significantly with the growth of e-commerce.
Common Methods
- Stolen card details
- Data breach information
- Phishing scams
- Skimming data
- Social engineering
Risk Factors
- E-commerce transactions
- Phone orders
- Digital payments
- Subscription services
- International purchases
Warning Signs
- Multiple failed attempts
- Unusual shipping addresses
- High-value purchases
- Rapid transactions
- Mismatched information
Prevention Measures
- 3D Secure authentication
- AVS verification
- CVV validation
- Fraud scoring
- Device fingerprinting
Best Practices
- Strong authentication
- Real-time monitoring
- Transaction limits
- Address verification
- Risk assessment
Merchants must implement robust security measures and maintain compliance with payment industry standards to protect against CNP fraud while ensuring a smooth customer experience.