Financial institutions across the country are experiencing the rise of fraud, particularly in the area of card fraud. As touchless payments and online transactions increase, the type of card fraud is switching from primarily card-present fraud to card-not-present (CNP) fraud. This type of fraud is happening to both credit and debit cardholders with over half of Americans having already been victims of digital payment fraud.
How CNP Fraud Attacks Occur
Fraud is occurring at alarming rates when the fraudster does not have the physical card being compromised. Already in 2022, there have been 365,000 reports of card fraud. The bad actors are accessing members’ information through credential stuffing, data breaches, synthetic identity, and payment apps like Venmo and Zelle. Most cardholders have already been victims of multiple fraud attempts but may be unaware as the bad guys know how to test out small amounts of fraudulent transactions in hopes they will go unnoticed.
Tactical Ways to Combat Card Fraud
To outsmart and outmaneuver the bad guys, consider these tactical approaches:
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