Ultimate Guide on Card Not Present (CNP) Fraud

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ULTIMATE GUIDE ON CARD NOT PRESENT (CNP) FRAUD
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What Is Card Not Present (CNP) Fraud?
Card Not Present (CNP) fraud happens when someone
uses stolen credit card details to buy something
without a physical card. This fraud is often seen
in online shopping, where the thief doesn't have
to show the card to a cashier.
CNP fraud is most frequently used to
Perform unauthorized purchases (typically online)
Make over-the-phone purchases
Transfer bank balances to a different account
Max out the credit cards
Create fake cards and change addresses
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Types of Transactions Most Vulnerable to CNP Fraud
Unsecured Websites or Platforms
Mobile Payments and Digital Wallets
Over-the-phone Transactions
Online Shopping
In-app Purchases
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Why You Should Address CNP Fraud Right Now
Rising Digital Transactions
Financial Loss Prevention
Inter-Connectivity
Consumer Trust
To allow the users easy accessibility, generally,
all the cards and bank accounts are interlinked.
More commerce is moving online. In the future,
the majority of businesses will have at least
some ecommerce activities.
Customers may stop buying due to trust issues in
online payments, leading to business losses.
Control CNP fraud to minimize financial losses
and curb the economic impact of fraudulent
activities.
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Common CNP Fraud Red Flags for Businesses
Mismatched Billing and Shipping Addresses
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Unusual Purchase Patterns
Unusual IP Addresses
Monitor for unusual activity high-value
transactions, new IPs, inconsistent behavior, and
sales spikes.
Scammers switch IPs for anonymity, evading
charges. Inconsistent sales signal potential CNP
fraud.
Scammers alter delivery, shift locations, and
request urgent deliveriesindicating potential
CNP fraud.
Multiple Failed Payment Attempts
Inconsistencies in Account Information
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Unusual Time or Frequency
Know customer patterns odd hours or high orders
may signal fraud. Check purchase history for
matching behavior in new transactions.
Detect inconsistencies like altered personal
info, email, and contact changes in multiple card
entries for security concerns.
Monitor failed payments for potential
unauthorized access or transaction attempts.
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How Businesses Can Prevent CNP Fraud
Biometric Authentication
Two-Factor Authentication (2FA)
Users can access their account after verifying
their identity through a 2FA method.
This enhances security and verifies users by
linking activities to unique physical attributes.
Fraud Detection Tools
Fraud Monitoring with Machine Learning
Invest in an identity verification tool that can
spot fraudulent profiles.
Users can access their account after verifying
their identity through a 2FA method.
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Secure Payment Gateways
Employee Training
Choose a trusted payment platform to avoid scams
and protect customer information.
Periodically train your staff to recognize and
respond to potential signs of fraud.
Regular Security Audits
Blockchain Technology
Regular security audits uncover discrepancies and
spot potential red flags in systems.
Blockchain ensures secure, tamper-proof,
decentralized identity verification.
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FAQs
How Does CNP Fraud Happen?
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CNP Fraud can occur through stolen card
information, phishing, or data breaches, enabling
unauthorized individuals to make online purchases.
How Common is CNP Fraud?
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With the rise of online transactions, CNP Fraud
is a growing concern globally. Staying vigilant
and adopting best practices for secure online
shopping is essential.
Are There Tools to Detect CNP Fraud?
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Advanced fraud detection systems analyze
patterns, behaviors, and transaction anomalies,
helping identify and prevent CNP Fraud.
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Thank You
Contact Us
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info_at_ftxidentity.com
www.ftxidentity.com