What Is Card Not Present fraud?

Posted by Peter Brady on Fri 7th July 2006 at 09:00 AM, Filed in Fraud

Card not present fraud is fairly self explanatory. It generally occurs when neither the card nor its holder are present at the point of transaction, whether it be by telephone, mail order or internet transactions.

The fraud is perpetrated by utilising fraudulently obtained card details to make a purchase. The most common way for details to be taken are from discarded receipts. As with counterfeit fraud, the legitimate cardholder may not be aware of the fraud until a statement is received.

According to industry insiders “The UK card industry has made available to merchants, an address and card security code checking system, to fight this type of fraud.”

I think the message here is to destroy your receipts, preferably by using a cross shredder or incineration.

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