While card testing does use technically advanced software and tactics, it is possible for merchants to detect and prevent card testing. Fraud detection solutions should be ready to detect orders that are missing this crucial confirmation number. Often, the fraudster does not have the correct CVV information. A large number of AVS messages can indicate card testing and invalid credit card use. Address Verification Service (AVS) alerts.This can indicate that a fraudster is testing credit card details, looking for valid information. A high rate of authorization failures.These purchases can be from the same credit card or with multiple cards. The bots and scripts used by fraudsters are programmed to make as many purchases as possible, as quickly possible. Have a solution that sends alerts for repeated small transactions from the same credit card number or IP address. Knowing the signs of card testing fraud allows merchants to make changes to payment solutions and fraud detection strategies. There is no need for merchants to feel helpless in the face of this technically savvy fraud. This fraudster is now a recognized customer, so there’s a chance the order won’t be flagged. The end goal for the fraudster is to find a valid credit card and then to make large purchases from the merchant site they already tested. For example, when a merchant website indicates that the expiration date is incorrect, a savvy fraudster can use the Dark Web and other tactics to determine the correct expiration date. With this information, fraudsters are able to adjust the credit card details in hopes of success. Typically, fraudsters use bots and scripts to test the credit card information, then target merchant sites that provide automated responses that provide decline details. The small purchase testing tactic allows fraudsters to go mostly unnoticed by fraud detection solutions and by the innocent cardholder. The fraudsters need to check the validity of the credit card details, and once they confirm the credit card is valid they proceed with making larger fraudulent purchases. Card testing fraud is just as costly and damaging to merchants as friendly fraud and chargeback fraud.Ī recent study conducted by Radial in the first quarter of 2017 reports that of the merchants surveyed, card testing fraud was up 200% in the first four months of the year, compared to the same time period in 2016.Ĭard testing happens when fraudsters test stolen credit card details by making small online purchases. Because of the nature of card testing fraud, it often goes undetected by merchant fraud detection solutions and is only detected when it’s too late. A great deal of merchant focus is on stopping friendly fraud, and while this is a key area of fraud traffic, other fraud methods should not be overlooked.Ĭard testing fraud is one such fraud method that is easily overlooked. The fraud landscape is a moving target, and this means that merchants must be ever vigilant against fraud threats.
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