Rafael Lourenco
What Retailers Don’t Know about Omnichannel Fraud. Check out our article, by Rafael Lourenco - Executive Vice President, at about-fraud.com.
As retailers add and expand omnichannel operations, their fraud management challenges are growing, too. Organized retail crime (ORC) targets omnichannel retailers in several ways, including “buy-online, pick-up-in-store” e-commerce fraud, online card fraud, return fraud, and even old-fashioned brazen shoplifting. While shoplifting is a matter for in-store security teams and local police, other types of omnichannel fraud can be reduced or prevented by working with experts who deploy some specific screening practices. Let’s look at a few typical omnichannel fraud challenges and ways to prevent them.
Card-testing fraud happens when criminals try to match stolen credit card numbers with the other data they need to complete online purchases: expiration dates and card verification values (CVVs). To do this, they make small “test” purchases with online and omnichannel retailers that don’t limit the number of attempts a customer can make to get their payment data right. Card-testers can also try making purchases of increasingly expensive items until they run up against the card’s limit. Industry experts say card-testing fraud has increased by 200% so far in 2017.
The solution to card testing fraud includes comprehensive screening of IP addresses and velocity checks to limit data-entry attempts at checkout to prevent endless testing.
To read the full article please go to: What Omnichannel Fraud Looks Like.
