In today’s business world, non-cash transactions are a cornerstone of modern business, as they offer convenience to customers while allowing merchants to boost sales. However, this convenience also comes with the ever-present threat of different types of credit card fraud that can have severe consequences for businesses of all sizes. Merchants should stay alert and gain every piece of information they can to stay one step ahead of cybercriminals.
In a significant development for ATM users across the US, Visa and Mastercard are to pay $197 million to settle a class action lawsuit over ATM fees. The lawsuit, which was filed in 2011, said that both businesses kept ATM fees artificially high. These practices restricted competition, which resulted in higher costs for consumers using out-of-network ATMs.
Credit card fraud is a significant threat to many Americans each year, and it impacts thousands of people. As fraudsters constantly adapt their strategies to exploit unsuspecting victims, knowing what is credit card fraud can help prevent scams from happening.
According to the Federal Trade Commission (FTC), credit card fraud accounted for nearly 30% of all reported fraud cases in 2022, with losses exceeding $5 billion nationwide. The increasing sophistication of fraudsters and their ability to adapt their strategies make fraud prevention vital.
Adding another transaction option to the many we already have at our disposal allows us to manage every situation seamlessly. Whether our clients are splitting a bill at a restaurant or sending money to someone, P2P payments make transactions seamless in every way. All in all, most scenarios can be effortlessly handled through different peer-to-peer apps because you can use them for more than just sending money. They are changing the future of banking by making it easier, faster, and more accessible than ever before.
The expansion of e-commerce has kept its pace, even after the COVID-19 pandemic has long since passed. It’s true that the pandemic sparked an accelerated demand for an online shopping experience, but its convenience is what kept it expanding even further. With it came third-party fraud and other new ways scammers tried to abuse business’s vulnerabilities.
As technology advances, so do fraudulent activities, along with their complexity. Merchants are facing new challenges each day because criminals gain new ways to exploit vulnerabilities. Among these fraudulent activities, it’s good to know what second-party fraud is, its differences as opposed to first-party and third-party frauds, and how to avoid and prevent them.
Online shopping has brought many advantages, both to merchants and customers. It offers ease of access to goods and services, and it’s easier for merchants to reach out to those unable to visit their brick-and-mortar stores. Although there are downsides to shopping online with a card, a dynamic CVV may help prevent fraud and keep the assets of both parties safe.
As non-cash payment options have become more widespread, so have different types of fraud. This is why companies should stay alert for the latest scams that can befall their business. First-party fraud is one of these schemes you should be wary of, and to prevent it, you will need to understand it fully.
It never hurts to know how much you can save.
