4 Methods Used By Criminals To Attempt Fraudulent Transactions

By: Gen Wright


Fraudulent transactions are amongst the things that any business is bound to have attempted within some point in time. There are various methods that can be used to create fraudulent credit card charges which can go through the system.

Credit Card Testing

This form of testing is done to locate usable card numbers and expiration date combinations. There are tools freely available to create "testable" card numbers for nearly every type of processing gateway. All of the numbers that are generated with this type of testing are valid numbers but will lack the appropriate expiration date combination and name to be used with the card. Sometimes these tools will even have a CCV generator that is mathematically accurate based on the numbers used to generate the original card number. Once a person finds a usable card information combination, they can go to various websites and place fraudulent transactions in the account's name, even if the account technically does not exist.

Using International Cards

International card accounts are an increasing frequency of occurrence. The person who is using the card opened it with either a false name, or falsified information to create an account online. They strategically get the account for purposes of fraud to use in a different country. Once the fraudulent transaction has been taken out in a variety of locations and the card has been maxed out, they simply forget about the card and allow it to get lost in the river of debt for the credit company they have scammed out of money. The repercussions could go as far as hurting the businesses where the transactions were made.

Frequent Chargeback Disputes

Fraud criminals are generally trying to find options which will allow them to get free goods and services. It is not uncommon for them to strategically use chargebacks as a way of resolving issues with their purchases. Controlling these can be almost impossible for the businesses that are affected. All a criminal needs to do is know the limits for chargebacks and when to use them to get their purchases voided with a simple processing fee. Preventing fraudulent transactions in this manner requires the businesses to monitor and prevent these problems from happening. Businesses that do not monitor these types of issues can even be shut down due to inadequacies of their system.

Active ATM Spying

Another form of card theft is simply taking the information from the credit card owners. The resulting fraud problem will be valid purchases made with little error. One simple method of attaining can be done from a vantage point angle from a building across from an ATM machine. With a clear enough professional quality camera shot, someone can get the name, expiration date and the credit card number with a single photograph.

More invasive methods have been observed with card skimmers and tiny cameras fitted to ATMs or other point of sale locations such as grocery store self checkout systems. The skimmers make it possible to get the card number while the miniature cameras can motion record pin number combinations. It is not impossible for the fraudulent charges to be made to these accounts within hours of them being logged in such a manner.

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For more information on how you as a business entity can protect against such like losses check out credit card fraud definition or credit card fraud numbers.

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