The first line of defense against fraudsters is to be aware of their ever-changing strategies. Three prevalent forms of payment fraud are as follows:
1. Card-Not-Present (CNP) Fraud
What is it?
CNP fraud occurs when stolen card details are used to make online purchases, bypassing the need for a physical card.
How it impacts Peach: Merchants face chargebacks, revenue losses, and reputational damage. For Peach, this can lead to increased operational costs and strained relationships with merchants.
2. Account Takeover (ATO)
What is it?
ATO happens when fraudsters gain unauthorized access to a user’s account, often by exploiting weak passwords or phishing. They then make fraudulent purchases or transfer funds.
How it impacts Peach: ATO leads to compromised trust in our platform and creates additional workloads for fraud and risk teams to resolve disputes.
3. Friendly Fraud
What is it?
This occurs when a legitimate customer disputes a charge with their bank, claiming it was unauthorized—even though they made the purchase.
How it impacts Peach: Friendly fraud is especially challenging because it’s difficult to prove intent. Dispute processing creates additional workload for fraud and risk teams.
Why This Matters
Fraud isn’t just a merchant problem—it affects us all. Every fraud case costs money, time, and trust. As part of the Peach team, you play a critical role in spotting red flags and ensuring our processes stay secure.
Stay tuned for tomorrow’s article.