Online payment fraud can take many forms, and fraudsters are constantly developing new techniques to steal money and personal information. Some of the most common types of online payment fraud include: 1. Account Takeover (ATO) Fraud: In ATO fraud, a fraudster gains access to a victim's online account (such as a bank account or e-commerce account) by stealing their login credentials, typically through phishing or other forms of social engineering. Once they have access, they can make unauthorized transactions, change account information, and steal sensitive data. 2. Synthetic Fraud: Synthetic fraud is a type of identity theft where a fraudster creates a new identity using a combination of real and fake information. They may use stolen social security numbers or other personal information to create a fake identity, which they then use to apply for credit or open new accounts. The victim may not even be aware that their identity has been stolen until they start receiving bills or debt collection notices for accounts they never opened. 3. Collusion Fraud: In collusion fraud, two or more individuals work together to commit fraud. This can include employees working with external fraudsters, or fraudsters working together to create fake identities or manipulate transactions. Collusion fraud can be difficult to detect, as the individuals involved may be careful to cover their tracks. 4. Phishing Fraud: In phishing fraud, a fraudster poses as a legitimate business or organization in order to trick victims into giving up their personal information. This can include sending emails or text messages that appear to be from a bank or e-commerce site, asking the victim to click on a link and enter their login credentials or other sensitive information. 5. Card Not Present (CNP) Fraud: CNP fraud occurs when a fraudster uses stolen credit card information to make purchases online, over the phone, or through mail order. This type of fraud is more common now due to the increased online shopping and digital transactions. 6. Friendly Fraud: Friendly fraud happens when a customer disputes a legitimate transaction by claiming it was unauthorized or fraudulent in order to get their money back. Friendly fraud can be difficult for merchants to prevent or fight back, as it can be hard to prove that the transaction was valid.
7. Chargeback Fraud: Chargeback fraud occurs when a customer disputes a legitimate transaction and requests a chargeback from their credit card company, claiming that the transaction was fraudulent or unauthorized. In reality, the customer may have received the goods or services they paid for, but are attempting to get a refund without returning the goods or canceling the service. These are just some of the most common types of online payment fraud. As technology continues to evolve, it is important to stay vigilant and take steps to protect your personal and financial information.
Further Reading and Resources:
https://www.udemy.com/course/payment-and-payment-fraud/