The State of Global Credit Card Fraud

  • Fraud Prevention


You constantly hear about new ways for individuals to protect themselves against credit card fraud, but what are the problems businesses suffer due to this fraud?More and more purchases are being made by credit card either online or by telephone. Frequently, items are shipped before credit card fraud is detected, and the business owners lose both the money from a potential purchase and the goods themselves. Protecting your business against credit card fraud is critically important.

Unlike in most nations around the world, where credit cards are required to have an electronic chip, businesses in the United States are vulnerable to credit card fraud in person due to the far less secure magnetic strip in use here. Despite this flaw, a strong fraud prevention solutioncombined with certain basic precautions can reduce this risk. Requiring a drivers license and other types of ID verification are a big help toward preventing fraud.

The most difficult type of credit card fraud to detect purchases made either over the phone or Internet is when the card is not physically present, frequently called CNP. These sales are inherently more risky, since the merchant cannot verify identity without a good identity verification system. An additional preventive measure is for merchants to only ship to an address approved by the cardholder. Merchant banking systems offer simple methods of verifying this information.

Identity theft is also the cause of significant financial loss. This situation can only be effectively controlled with a good electronic and identification system. IdentiFraud Consumer is the one-stop solution for consumer fraud prevention. By utilizing Age Verification, Dynamic Knowledge-Based Authentication, and various other consumer data, EVS can compile an Individual Fraud Score to understand the risk associate with each customer. The threshold can be adjusted on the score ranking to only allow the trustworthiest clients to performance credit card transactions. This coupled with any of our other solutions readies a company for the fight against the threat of credit card fraud.

[Contributed by EVS Marketing]