How to Prevent E-Commerce Card Testing Fraud

When fraudsters obtain stolen card information, one of the first things they do is start testing each card’s validity and available funds by making small purchases online. If the card is authorized, the fraudster will know that they can start using the card to make larger fraudulent purchases. If the transaction is not authorized, the fraudster can continue testing it with alternate billing addresses, security codes, or other details until they find the right information. To make this retry process easier, fraudsters will often use bots to test large volumes of cards on e-commerce sites that will give a reason for the declined authorization.

Unfortunately, card testing fraud is on the rise, and it can be quite detrimental for e-commerce merchants. Fraudulent transaction attempts can rack up authorization fees, which not only impose an added cost but can even cause issues for the merchant’s processing account.

As an e-commerce merchant, it’s important that you implement the right technology and safety measures to keep card testing fraud at bay. Here are four steps you can take:

  • Look Out for Suspicious Transaction Activity
    Receiving many low-ticket transactions, or receiving many transactions in a short period of time, can both be signs of card testing fraud. Another sign of card testing fraud is receiving many Address Verification Service (AVS) alerts or Card Verification Value (CVV) error messages.

  • Utilize Fraud Prevention Tools
    There are several solutions available to help you stop fraud in its tracks. This includes, among other things, AVS and CVV checks, fraud screening software, EMV 3-D Secure verification technology, and CAPTCHA tests.

  • Include More Payment Fields
    Requiring more information at checkout makes it more difficult for fraudsters to test cards. Besides including payment fields for credit card details, consider adding fields for addresses, email addresses, and phone numbers.
  • Perform Regular System Scans for Malware or Spyware
    This will help ensure that your e-commerce site is kept safe from security threats.

Want to learn more about accepting online payments securely? Reach out to Fidelity’s Customer Service team for assistance!