Online Payment Fraud

Online payment fraud is a type of financial fraud that involves unauthorized and deceitful transactions using stolen payment credentials. It occurs primarily over the internet and affects various parties including consumers, merchants, and financial institutions. This fraudulent activity can take several forms, such as credit card fraud, account takeover, identity theft, and triangulation fraud.

The consequences of online payment fraud are significant, often resulting in chargebacks where the transactions are reversed, and the merchant is held financially responsible for the loss. Chargebacks not only affect the merchants' bottom line but also damage their reputation with payment processors and banks.

To combat online payment fraud, merchants and financial institutions employ various preventive measures such as:

Online payment fraud remains a persistent challenge in the digital age, necessitating continuous advancements in security technology and practices to safeguard transaction integrity and protect sensitive customer information.