Card-Not-Present Fraud
So convenient to buy just about anything online or by phone using a credit card. Bicycle for two with rear ejector seat? Easy. Dentures with built-in grill? Done. Yellow cake (Uranium, not the birthday kind) from Chad? One word: PayPal.
However, it’s a real challenge for online vendors to avoid card-not-present fraud, as they aren’t able to check for fake or stolen cards using microchips, or ask for identification. They have just a few options to detect if the card is not valid, such as asking for an address and comparing it to the billable address the credit card company has on file. They can also ask for the three-digit CVV code on the back of the card...but of course that can be stolen too.
A thief can get most of the information he or she needs by purchasing stolen credit card numbers that are actually advertised on the internet. They can also get them through phishing, where they send an email to an unsuspecting person (especially the elderly) asking that their credit card information be verified. Or perhaps a disgruntled employee uses the company credit card to go on a personal shopping spree. Then there are those who place an order online and then claim they never received it, getting a credit back from the vendor. Unfortunately, when the thief is successful in a card-not-present fraud, it’s the merchant who has to eat the loss.
Now that card-present fraud is decreasing with microchip technology, there has been an increase in card-not-present fraud. But there is hope for the future to prevent hackers from breaking into a company’s network and stealing their customer data through unsecure online payment systems. More and more online vendors and mobile phone payment apps are using tokenization, a fraud detection software in which the retailer does not have to store data such as credit card numbers on their network.
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Finance: What are Phishing Scams?8 Views
Finance a la shmoop what are phishing scams? all right you know when you're out [Woman on fishing boat with Dad]
on the lake with dad just the two of you trying to haul in some trout when one of
the fish pulls a fast one on you and hangs one of these things on your line [Fishing line with boot attached]
yeah total scam we're telling you you cannot trust anything that breathes
through the side of its face anymore these days really okay so that's a not
quite a phishing scam although the general idea is similar it's someone
trying to make you believe something that isn't exactly true with a phishing
scam the venue switches from the great outdoors to cyberspace never gotten an [A wooden hut appears]
email from a Nigerian prince who's temporarily down on his luck and if
you'll just wire him three hundred bucks in cash immediately well immeasurable
riches await you it sounds like a little good to be true there right yeah and it [Man gives thumbs up in room]
is well usually that Nigerian prince is an overweight balding guy named Jerry
living in his mom's basement in a suburb just outside of Cleveland he'd love
nothing more than to hook a sucker you and take that 300 bucks [Jerry on his computer]
off your hands but many times the scam is much more intricate than that often
its identity thieves who are trying to con you into releasing private
information such as your social security number or credit card information mm-hmm
that's out there well they might try to convince you that
their Amazon support or your bank or your long-lost uncle Yusuf who just [Person flicking through e-mails]
needs a few personal details before he can FedEx you your large inheritance
don't fall for any of it anytime you're randomly asked to divulge any sensitive
information or pop a wad of cash in an envelope stop for a second and ask
yourself whatever you might be well a fish and then ask yourself whether you'd [Cash burning]
like all your hard-earned money to be sauteed or flame-broiled good stuff...
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