Global payment fraud trends
01 / 02 / 2021
Payment fraud is a major challenge for banks and merchants But striking the right balance between preventing fraud and not causing any inconvenience for the customers can be very tricky This blog will provide you an overview of the most important current trends in fraud that banks and merchants should be aware of as well as an overview of fraud in different geographies
Over the years, fraud attacks have evolved and become more and more sophisticated. With Worldline’s access to vast amounts of data provided by banks and merchants, we have identified the most common attack methods.
The top 4 fraud types targeting banks fall into the following categories
- Account Takeover (ATO): An account takeover happens when criminals gain access to a person’s online e-commerce or financial accounts, often resulting in unapproved transactions and purchases.
- Traditional phishing: Happens in all online channels. By phishing, the fraudster obtains banking or other payment information.
- Malware: This can take the shape of keylogging, where the bank customer’s computer gets breached by criminals who can steal any passwords that are entered, take screenshots, record viewed web pages, and grab any sensitive personal or financial information.
- Identity theft: This is going one step further than ATO attacks and consists in opening of bank accounts, loans and credits with falsified or illegally obtained consumer details.
The top 3 frauds targeting merchants:
- Card not present: The number one cause of fraud targeting e-commerce merchants is still stolen or breached card data.
- Account Takeover: The increase in phishing attacks is generating an increase in compromised payment wallets or bank accounts.
- Friendly fraud: Items ordered online are not being signed for due to the reduction in human contact.
The geographical data
A merchant who is considering company expansion and establishing branches overseas, may want to consider learning about which types of fraud are trending on the continent they are aiming for.
Interested in learning more on the most important fraud trends that banks and merchants should be aware of nowadays? Worldline Financial services CMO Andrej Eichler explains how they can protect themselves from these alarming new trends. Check the full article to read a more detailed scrutiny on the above-mentioned fraud trends as well as an outline of the key fraud trends for each continent. Discover how Worldline can support banks and merchants to achieve a safer and more secure online experience !
