- Card-not-present fraud: With the increase in online and mobile payments, card-not-present fraud is becoming more common. This occurs when a criminal uses stolen credit card information to make a purchase online or over the phone.
- Skimming: Skimming is a form of credit card fraud that occurs when criminals attach a small device to a credit card reader, such as an ATM or gas pump, to capture credit card information.
- Phishing: Phishing is a form of fraud in which criminals use email, text messages, or phone calls to trick individuals into providing personal information, such as credit card numbers, login credentials or other sensitive information.
- Account takeover fraud: Account takeover fraud occurs when a criminal gains access to a victim’s credit card account and uses it to make unauthorized purchases. This can happen through a variety of methods, such as phishing, malware, or social engineering.
- Synthetic identity fraud: Synthetic identity fraud is a type of fraud in which a criminal creates a fake identity using a combination of real and fake information. The criminal then uses the synthetic identity to open credit card or other accounts, and rack up debt.
- Return fraud: Return fraud is a type of credit card fraud that occurs when criminals purchase items with a stolen credit card and then return them for cash or store credit.
- CNP fraud: CNP fraud is a type of fraud that occurs when a criminal uses a stolen credit card to make an online purchase. This type of fraud is becoming more common as online purchases increase.
These are some of the trending frauds, and to prevent them, merchants and payment processors are implementing advanced fraud detection and prevention systems, such as machine learning algorithms, to identify and prevent fraudulent transactions.