Card Testing is a fraudulent technique where criminals verify stolen credit card information by making small test transactions before attempting larger fraudulent purchases, often using automated methods to process multiple cards quickly.
Characteristics
- Small amounts
- Rapid testing
- Multiple attempts
- Automated processes
- Pattern testing
Warning Signs
- Frequent transactions
- Low-value purchases
- High decline rates
- Repeated attempts
- Unusual timing
Detection Methods
- Velocity monitoring
- Pattern analysis
- Amount tracking
- Device identification
- Behavior profiling
Prevention Strategies
- Transaction limits
- Fraud scoring
- Authentication rules
- Velocity checks
- Risk assessment
Security Measures
- CVV verification
- Address validation
- Device fingerprinting
- IP monitoring
- Behavior analysis
Best Practices
- Real-time monitoring
- Quick response
- System updates
- Staff training
- Data analysis
Card testing is often a precursor to larger-scale credit card fraud.