Preventing Online Card Fraud

If you look at global trends, it’s easy to see that online card fraud is on the rise. On one hand, we’ve seen the development of better chip technology to protect against data skimming and face-to-face fraud. But on the other, we’ve also witnessed massive corporate data breaches and rampant identity theft.

Given the increased difficulty of face-to-face fraud and seemingly vulnerable aspects of some organisations, it’s no wonder fraudsters are migrating their activities online. But what is online card fraud exactly?

At its core, online card fraud – also known as card-not-present fraud – occurs when a customers card details are stolen and then used to make fraudulent purchases online. Fraudsters obtain this information using a variety of different techniques, often using malware or phishing attacks to acquire sensitive data.

As a merchant it’s impossible to control your customers and how they use their data outside of your business. But, there are a few steps you can take to reduce the risk of online card fraud in your business.


Start using tokenization

If you’re a merchant storing sensitive card information, you’re now a prime target for online card fraud. By using a process known as tokenization, all of the data you store can be replaced with a unique identifier called a token. This allows you to reference card information stored on an external secure system without ever exposing it to a live environment. This effectively adds an additional, non-reversible layer of security to your data without any added friction to the payment process.


Authenticate customer details

Coupled with processes like tokenization, we strongly suggest you start using risk-based authentication rules as well as strong customer authentication methods like 3D-Secure, particularly if you’re dealing with transactions that have a high risk profile. Automatically authenticating your customers identity and establishing the validity of the transaction being processed is absolutely crucial to stopping fraud before it even gets started.


Stop card fraud by partnering up

If you’re encountering online card fraud on a frequent basis, it’s probably best to partner up with the experts. IntegraPay is a Level 1 PCI-DSS certified gateway, capable of providing a full suite of payment and fraud monitoring services. We can help you get secure, share best practices and leverage our industry relationships to ensure you’re well protected.

Interested? For more information about online card fraud and monitoring services, talk to one of our friendly payment experts today.