Card testing is currently viewed as an effective tactic. Based on a study by Radial, a King of Prussia, Pa.-based omnichannel technology provider, during the 1st quarter of 2017, credit card testing grew two-fold as compared to the same period in 2016.
According to Michael Graff, risk analytics manager for Radial, for fraudsters, turning a profit is associated with finding card accounts that can be used to purchase items that can be turned into cash.
Criminals mainly focus on consumer electronics, gift cards, sporting goods, and jewelry. However, as Graff notes, criminals will target any merchant segment carrying merchandise they think they can resell.
Though criminals favor e-commerce merchants for card testing because there aren’t too many barriers in the card-not-present environment to fraud, card testing is increasingly creating more problem among charities.
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Chargebacks and False Positives
Chargebacks that are caused by card testing can’t just drive up merchants’ interchange fees; they also cause damage to their brand. Consumers who are victims of card tests, as a rule, have a negative opinion of the merchant’s ability to detect and prevent fraud. This can