CNP Fraud (Card Not Present)

CNP fraud, also known as Card Not Present fraud, refers to fraudulent transactions made using credit or debit card information without the physical presence of the card. It typically occurs online or over the phone where the card details are manually entered or stored for future transactions. This type of fraud often involves stolen card information, compromised accounts, or the use of counterfeit or generated card details.

CNP fraud is challenging to detect as the traditional physical security measures like signature verification or card imprints are not applicable. Fraudsters exploit this vulnerability by impersonating genuine customers or by using stolen card details to make unauthorized purchases. To mitigate CNP fraud, businesses and financial institutions employ various security measures such as two-factor authentication, fraud detection algorithms, address verification, CVV codes, and transaction monitoring to identify suspicious activities and protect against monetary losses. Frequent security updates, customer education, and collaboration among stakeholders are crucial to effectively combat CNP fraud in the digital age.