Credit card fraud, despite measures to stomp it out, still runs rampant in America. Forty-seven percent of credit card fraud consists of card-not-present (CNP) fraud. This includes payments via snail mail, phone and Internet.
The U.S. is headed towards EMV (chip) card technology, notes Scott Zoldi in FICO’s Banking Analytics Blog. Though chip-based authentication technology may cause non-CNP fraud to decline, don’t count on this same effect for CNP fraud, adds Zoldi.
There’s light at the end of this tunnel, however. Attempts at card fraud have risen, but the average loss per compromised account dropped by 10 percent. The ratio has been the same for fraud to non-fraud spending. The volume of card fraud that has increased correlates to the volume of increase in shopping with credit cards in the first place, writes Zoldi.
How can you spot CNP fraud? Visa offers the following warning signs for this type of crime:
- Orders consisting of several of the same product
- Orders full of big-ticket merchandise
- Transactions that have similar account numbers
- Shipping that goes out to an international address
- Transactions placed on several cards, but the shipping goes to a single address.
- Multiple cards that are used from one IP address
Oregon-based security firm iovation can stop fraudsters and keep them out for good. ReputationManager 360 goes beyond personally identifiable information (PII) to prevent fraud. By identifying the devices connecting to the retailers site and assessing their reputation, their service instantly gives businesses the full story about any card-not-present (CNP) transaction.
Robert Siciliano, personal security and identity theft expert contributor to iovation. He is the author of 99 Things You Wish You Knew Before Your Mobile was Hacked! See him knock’em dead in this identity theft prevention video. Disclosures. For Roberts FREE ebook text- SECURE Your@emailaddress -to 411247