In a world of digital transactions and open communication, payments habitat is vulnerable to credit card fraud. Credit card fraud can be disruptive to an organizational framework, damaging a business’s credit report and can often be taxing for a company to investigate its root cause.
To avoid premature discovery, fraudsters engage in low-level testing also known as “carding”. It is done to cross-check the stolen credentials before making a costly purchase. Quick-service restaurants (QSRs) and restaurants have become primary targets for card testers as these small-ticket transactions don’t attract scrutiny.
Fraudulent Ingredients Cooking In The Payments Kitchen
Data Breaches: An unprecedented number of data breaches enable millions of stolen credit card accounts available on the Dark Web. This easy availability of Compromised credentials allows fraudsters to buy stolen credit card accounts in batches on daily basis.
Card Testing: After fraudsters buy stolen credit card information on the Dark Web, they typically make trial purchases on food and beverage websites to test authorization. Fraudsters minimize the cost of these tests, leave plenty of available credit to make big-ticket purchases once verified.
A Buffet of Unsavory Affairs in Online Food & Beverage Businesses
Operational Disruptions – The products that are shipped and delivered or get picked up by fraudsters are 100% loss to the business.
Manual Reviews – Food and beverage wholesale companies embrace costly manual reviews when chargeback rates rise.
Wasted Labor – Resolving fraud issues like chargeback, complaints, audits, etc. steals time of the employees from profitable activities.
Higher Transaction Fees – High rates of fraud and chargeback can result in higher processing fees.
Stir QPS’ Fraud Detection & Prevention Solutions For Tender Growth In 2018
In a world where there is hardly any payment that cannot be processed online, it has become necessary to take preventive measures. Online credit card fraud is on the rise in the United States and narrowing a single attribute for its cause won’t help. From the popularity of online shopping to the insecure sites that process monetary transactions, entire ecosystem is vulnerable to the sophisticated attack vectors.
QPS International fraud detection & prevention services provide a critical layer of behavioral analytics alloyed with machine learning mitigating fraud across all channels. QPS diligently adopts and implements best practices to provide best in class cross-channel fraud prevention through 100 % anomaly detection mode.