News, Education and Events Decoding Digital Payments & Fraud

News, Education and Events Decoding Digital Payments & Fraud

Identifying Card-Testing Increasingly Important for Preventing CNP Fraud: Analysis

Identifying Card Testing Increasingly Important for Preventing CNP Fraud: Analysis

Card testing is an increasingly serious problem for the fraud departments of e-commerce merchants, rising 200 percent in the first quarter of 2017 compared to the same period a year ago, according to an analysis by Radial. The Philadelphia-area omnichannel solutions provider said fraud, in general, is up 30 percent for its e-commerce customers, but that card testing—when criminals make small incremental purchases with stolen card data to see if the information is useable before making a significant fraudulent transaction—is a problem merchants must be more aware of. The challenge, the company said, is that it is difficult to fine-tune automated fraud processes to identify and prevent card testing while not rejecting too many legitimate orders. And, for smaller retailers, they might not have access to the data to identify card testing at all.

“Our data adds another alarming statistic for retailers who may be unprepared to manage fraud activity in e-commerce. We know fraudsters won’t stop looking for opportunities to monetize their stolen data and will even automate this process once they have a card that appears to be working,” said Stefan Weitz, chief product and strategy officer at Radial. “This results in quick, large-volume purchases that leave retailers vulnerable.  When retailers miss card testing, they’re contributing to future card attacks. Fighting card testing is complicated, but can stop millions of unanticipated fraud attacks if tracked and managed efficiently. Increasing revenue has never been more important for retailers. They cannot afford to be slammed with fees that stem from missing fraud activity and must count on each good order getting approved.”


Learn more about this topic at these CNP Expo Education Sessions in Orlando, FL from May 22-25, 2017.

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