Three Common Payment Fraud Threats to Know

CNP fraud is most widely committed in connection with purchasing high-value goods such as electronic devices and mobile phones but is gradually shifting into other areas such as booking hotels.

FREMONT, CA: Payment fraud involves various ways of fraud, including card fraud, skimming, jackpotting, and company email compromise. Criminals are continually changing their approach and adjusting to new security policies, increasing the attacks' success rate.

Skimming

Skimming is the copying of card magnetic-stripe track data at Point of Sales terminals and ATMs. In addition to using a skimming device that is usually composed of metal or plastic to steal the PIN, offenders can often mount a camera on the ATM.

Skimming continues to be one of the most frequent frauds in Europe, as not all payment terminals and ATMs in Europe contain the requisite anti-skimming measures. The stolen card data may then be sold or used to carry out bank withdrawals on the Darknet.

Business email compromise

Business email compromise (BEC) attacks include the impersonation of company personnel, usually senior management representatives who can approve transfers, deceiving workers into moving funds to the offender's account.

BEC has also become a priority for European law enforcement, with attacks being' more professional and persuasive.' Although the tool of choice has historically been social engineering, a range of different approaches are now being used, including network intrusion, malware, and the hacking of legitimate email accounts to impersonate key people.

Card not present fraud

Once an individual's credit card data has been compromised by a mechanism such as a third-party hack, phishing email, or scam text message, card not present (CNP) fraud may be committed. Without physically holding the wallet, the scammer tries to make a fraudulent credit card purchase online or over the phone.

CNP fraud is most widely committed in connection with purchasing high-value goods such as electronic devices and mobile phones but is gradually shifting into other areas such as booking hotels. Credit card information availability is unparalleled, with stolen credit card details used by other criminals often sold on the dark web.

The provision of technologically advanced crime-as-a-service systems that provide offenders with a simple user interface allowing them to commit acts of fraud and escape detection is a relatively recent development.