With EMV in full swing, there is a much higher chance this holiday season for merchants to end up with coal in their stocking due to the potential of CNP fraud rising because of EMV. However, there’s no need to worry, as long as you stay vigilant and know what to look for, here are 10 signs that you might be subject to CNP fraud.
Tip #1: First Time Shopper
This one might seem kind of silly, but always be wary of first-time shoppers, criminals are always looking for new victims, this also plays into to tip #2.
Tip #2: Larger Than Normal Orders
Stolen cards or account numbers have a limited life span before they get flagged. Because of this fraudsters are looking to get the most out of their purchases so it’s, “go big or go home” when it comes to their purchases.
Tip #3: Orders That Include Multiples Of The Same Item
This comes down to simple math, criminals are looking for as much profit as possible, having multiples of the same item increases their profits.
Tip #4: Order Is Only “Big Ticket” Items
Your big ticket items have the maximum resale value, and therefore the maximum profit potential for fraudsters. Watch out for orders like these, it might be exciting to see, but always verify with the customer first before you fulfill it.
Tip #5: Shipping To An International Address
A significant number of fraudulent transactions occur outside of the US since Visa AVS can’t validate non-U.S. purchases, outside of Canada and the UK.
Tip #6: Single Address, Transactions on Multiple Cards
This should be a red flag when this appears, as this could involve account numbers that were generated using pirate software, or even be done with a batch of stolen cards.
Tip #7: Multiple Transactions On One Card Over A Short Period Of Time
This could be an attempt to “run the card” (make as many transactions as possible) before the account associated with the card is closed.
Tip #8: Multiple Cards Used From Single IP
If more than one or two card is being used to purchase from your store from the same IP address, then there is a high possibility that the transactions are fraudulent.
Tip #9: Multiple Transactions On Card with Single Billing Address, but Multiple Shipping Addresses
This kind of fraud usually indicates organized activity rather than a single fraudster at work. Be very cautious of these kinds of orders.
Tip #10: “Too Good To Be True”
The old adage rings true for online business, if the order is uncharacteristically large for your business or if the sale is otherwise outside the norm for your business, it’s probably too good to be true and is a fraudulent sale.