Protect your business and customers from CNP fraud with this comprehensive guide, and learn the types, techniques, and prevention methods to protect your customers' data.

1. ULTIMATE GUIDE ON
CARD NOT PRESENT
(CNP) FRAUD

2. Perform unauthorized purchases (typically online)
What Is Card Not Present (CNP) Fraud?
Card Not Present (CNP) fraud happens when someone uses stolen
credit card details to buy something without a physical card. This
fraud is often seen in online shopping, where the thief doesn't have
to show the card to a cashier.
CNP fraud is most frequently used to:
Make over-the-phone purchases
Transfer bank balances to a different account
Max out the credit cards
Create fake cards and change addresses

3. Types of Transactions Most Vulnerable to CNP Fraud
Online Shopping In-app Purchases
Mobile Payments and
Digital Wallets
Unsecured Websites or
Platforms
Over-the-phone
Transactions

4. To allow the users
easy accessibility,
generally, all the
cards and bank
accounts are
interlinked.
Why You Should Address CNP Fraud Right Now
More commerce is
moving online. In the
future, the majority of
businesses will have
at least some
ecommerce activities.
Rising Digital
Transactions
Inter-Connectivity
Customers may stop
buying due to trust
issues in online
payments, leading to
business losses.
Consumer Trust
Control CNP fraud to
minimize financial
losses and curb the
economic impact of
fraudulent activities.
Financial Loss
Prevention

5. Common CNP Fraud Red Flags for Businesses
Monitor for unusual activity:
high-value transactions, new
IPs, inconsistent behavior, and
sales spikes.
Scammers alter delivery, shift
locations, and request urgent
deliveries—indicating potential
CNP fraud.
Scammers switch IPs for
anonymity, evading charges.
Inconsistent sales signal
potential CNP fraud.
Unusual Purchase Patterns Unusual IP Addresses
Mismatched Billing and
Shipping Addresses
Unusual Time or Frequency
Know customer patterns; odd
hours or high orders may signal
fraud. Check purchase history
for matching behavior in new
transactions.
Multiple Failed
Payment Attempts
Monitor failed payments for
potential unauthorized access
or transaction attempts.
Inconsistencies in Account
Information
Detect inconsistencies like
altered personal info, email,
and contact changes in
multiple card entries for
security concerns.
1 2 3
4 5 6

6. How Businesses Can Prevent CNP Fraud
Users can access their account
after verifying their identity
through a 2FA method.
This enhances security and
verifies users by linking activities
to unique physical attributes.
Invest in an identity verification
tool that can spot fraudulent
profiles.
Users can access their account
after verifying their identity
through a 2FA method.
Two-Factor
Authentication (2FA)
Biometric
Authentication
Fraud Detection
Tools
Fraud Monitoring with
Machine Learning

7. Choose a trusted payment
platform to avoid scams and
protect customer information.
Periodically train your staff to
recognize and respond to
potential signs of fraud.
Regular security audits uncover
discrepancies and spot
potential red flags in systems.
Blockchain ensures secure,
tamper-proof, decentralized
identity verification.
Secure Payment
Gateways
Employee
Training
Regular Security
Audits
Blockchain
Technology

8. FAQs
How Does CNP Fraud Happen?
Q.
CNP Fraud can occur through stolen card information, phishing, or data breaches,
enabling unauthorized individuals to make online purchases.
How Common is CNP Fraud?
Q.
With the rise of online transactions, CNP Fraud is a growing concern globally.
Staying vigilant and adopting best practices for secure online shopping is essential.
Are There Tools to Detect CNP Fraud?
Q.
Advanced fraud detection systems analyze patterns, behaviors, and transaction
anomalies, helping identify and prevent CNP Fraud.

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www.ftxidentity.com
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