Fraud Management

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How To Control Security Risk in Online Payments 

Fraud can occur in any online business. Even if you have a small e-commerce shop or your own retail network. Rapid technological development and the growth of the e-commerce market encourage scammers to look for new ways to access the market. So how do you deal with fraud? To find out, we need to examine payment processing in detail.

The global e-commerce market is projected to grow to $6.54 trillion by 2022. Mobile and internet shops have already become a huge part of our lives, and their scale is constantly growing.

Wireless transactions (CNP) are a big target for cybercriminals - the ECB (European Central Bank) states that CNP transactions represent more than 65% of card fraud cases. According to the fraud report in Europe, fraud in Europe accounts for almost 80% of all such card transactions.

Fraud can occur in any online business. Even if you have a small e-commerce shop or your own retail network. Rapid technological development and the growth of the e-commerce market encourage scammers to look for new ways to access the market. So how do you deal with fraud? To find out, we need to examine payment processing in detail.

The global e-commerce market is projected to grow to $6.54 trillion by 2022. Mobile and internet shops have already become a huge part of our lives, and their scale is constantly growing.

Wireless transactions (CNP) are a big bear

In many cases, sellers have to walk around a lot to check whether the cardholder has indeed made a purchase and the need to fight fraud has never been so great.

Fraud not only leads to the loss of money, but can also seriously damage the reputation and image of the brand. But with the right strategy and smart tools to protect against fraud, you can minimise the risk of fraud.

What is payment fraud?

The number of fraudulent activities is increasing with the use of credit cards on the internet. However, payment fraud can be described in many ways and the most common are fraudulent or unauthorised transactions, lost or stolen goods and false money claims.

Different types of online fraud

The growing popularity of online retailers has led to an increase in the number of fraudulent activities. In most cases, cybercriminals steal confidential information and also hack into network security systems to find failures or systems that have not been updated for some time.

 Thieves can create websites to sell popular products such as sanitation workers and masks. When paying for goods, the buyer carries out the usual procedure, just as with a regular purchase at an online shop. The victim enters his or her bank card details, which are transferred to a normal p2p payment service that provides transfers between individuals. The customer receives an SMS code to be entered on the 3D Secure (payment confirmation) page, which has appeared on the payment form. The victim eventually transfers the money to the thief's account, thinking that when the code is entered, payment confirmation for the purchase is given and the money is written off for the shop.

Identification Fraud

This type of fraud is committed by a cybercriminal who creates a trading account that looks like a legitimate business. They then bill for stolen credit cards and disappear as soon as possible before the cardholder realises what happened.

Phishing is a common way of stealing personal data from a customer via the Internet. In particular, card numbers, expiry dates, CVV/CVC and PIN codes are stolen from bank cardholders. Having received this information, fraudsters steal money from cards. It is not uncommon for criminals to create websites similar to the official internet pages of credit organisations, where they offer clients to leave confidential information about themselves. Another option is to send fake messages by mail or SMS from banks requesting card numbers.

Banks never ask for personal information about their customers by e-mail or SMS and recommend that they carefully check that the links they receive are correct. To make sure that you are on the original bank page, it is better not to use the links, but to go through the official resource of a credit institution.

Friendly fraud or false return requests

This type of fraud does not suit everyone. Friendly fraud occurs when the cardholder sends a refund instead of trying to return the money. Sometimes this can be the result of a mistake or misunderstanding on the part of the buyer. However, a refund can also be made intentionally - in this case, the customer wants his money back for a legitimate purchase.

Backing up your system with anti-fraud protection helps Your customers can relax when you have an anti-fraud protection system, which in itself is a great value.

The number of unidentified transactions is reduced, resulting in lower loan repayment costs. Real-time fraud detection minimises losses, increases revenue and therefore improves customer retention.

This will help you to improve the efficiency of your work.

Management fraud is a complex thing.

In 80% of cases, fraudsters who manage to deceive users and steal money from the card transfer it to the virtual cards of online wallets with the help of card to card transfer service, and after the stolen money is cashed out with the help of physical bank cards.

For example, the fraud victim enters the data of the physical card from which he wants to withdraw the money and the data of the virtual wallet where he wants to put it. A confirmation code message is then sent to the owner's phone number. The intruders contact the potential victim and present themselves to the bank's security staff, who then ask them to give them the code they have received. The intruders then withdraw the stolen money to a virtual card.

Please note that online fraud affects both consumers and businesses. If you refuse a legal purchase, you risk refusing to buy, but if you do not prevent your customers from becoming victims of crime, you will face a loss of trust and customer loyalty. In this way, you will gain a competitive advantage by keeping up with changing industry norms and trends.

As we have more choice and convenience, we make more online shopping than ever before.