What is card-not-present (CNP) fraud?

By nature, online transactions are made without a credit card being present at the time of purchase. Whether a customer is shopping on their smartphone or their laptop, a card-not-present (CNP) transaction occurs when an order is placed online.

CNP transactions are susceptible to fraud because the cardholder isn’t physically present when the order is processed, making it easy for fraudsters to use stolen credit card information to make CNP purchases.

Unsecured mobile devices, easy-to-guess passwords and unencrypted transmissions have opened a world of possibility for hackers to steal sensitive data and payment credentials from the likes of Facebook and other large organizations. In 2020, the Federal Trade Commission logged 393,207 official reports of identity theft via credit card fraud. Cybercriminals have also perfected malware that targets mobile devices to gather data, take control of the devices and modify their settings.

Related Topics

Ecommerce Fraud Basics

Chargeback Management

Related Resources

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Understand Your CNP Fraud Risk and Optimize Your Fraud Prevention Process

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