What is merchant fraud and how does Infinity Data work to protect your business and your customers?
Merchant processing fraud takes place when someone poses as a legitimate consumer to deceive businesses and make illegitimate profits. At its core, merchant processing fraud is a type of criminal activity in which an individual or group seeks to exploit the payment systems and processes that underpin the world of commerce, to steal from unsuspecting businesses.
Some business types should expect a higher rate of attempted merchant fraud then others and need advanced tools to help combat these illegitimate attempts. Infinity Data has access to several tools that merchants may employ to combat these attacks.
Address Verification – Inputting the billing address as part of the transaction helps ensure the cardholder is legitimate. Shipping product to only the billing address on file also helps.
Device Fingerprinting – information taken from the entry device can be used to identify the transaction origination
3D Secure Authentication – An authentication protocol that helps verify the cardholder’s identity during online purchases, reducing the risk of fraud
Transaction Monitoring and Patterning- By keeping a close watch on transaction activity, patterns and input methods can be used to verify the transaction
Transaction Scoring – Factors used in the transaction can be rated and zones can be established to identify the individual risk level of each transaction, and actions can be taken based on the overall score.
Tokenization – Using tokenization procedures, once PAN is submitted, it is then tokenized and the token replaces the PAN for each following reference.
Encryption – Communications are encrypted to prevent eavesdropping