Despite the efforts of card brands, credit card fraud continues to grow through a variety of methods. The most popular method of fraud appears to be committed through skimming acts. Online sellers have become prime targets for fraud and have experienced a whopping 140% increase in credit card fraud over the past three years.
What Are Skimmers
- Skimmers are card-reading devices inserted into payment terminals to steal card information.
- They are frequently inserted into gas pump readers.
- They use blue-tooth technology to remotely beam the credit card data to the fraudster.
- Data is captured and sold on the black market to be used in online transactions.
- Desktop terminals and gas pumps are the popular places to install a skimmer.
Other Types of Fraud
- Other fraud on the rise includes scams targeting cardholders into providing credit card data.
- Fraudulent Card-Not-Present transactions represent a whopping 65% of all fraud losses.
- Occurs with online transactions, phone payments, and manually entered transactions.
- It costs more when you manually key a transaction because the risk of fraud is higher.
Geographic Data
- Virginia, Texas, New Jersey, Florida, and Colorado have seen fraud increases of 50% or more.
- Virginia and Texas are included in the top five states for compromises.
- California is the top state for skimming.
- The United States, United Kingdom, and Australia are countries with the highest rates of fraud.
- The U.S. accounts for around a third of all global fraud losses.
The Bottom Line
- Stay informed about the latest fraud trends.
- Be vigilant in watching card readers, payment terminals and onsite ATMs for obstructions
- Use contactless Tap N’ Go payment technology.
- Be diligent in who you give your credit card data to over the phone.
- If asked to provide a credit card number over the phone, hang up.
Who is Aurora?
Aurora Payments provides reliable payment solutions for any industry and any environment. As a Full-Service Provider (FSP), we have all the products, services, solutions, and support Merchants need – all-in-one place.
Interested in learning how you can eliminate credit card processing fees?
Send us an email at hello@risewithaurora.com
