The Radial eCommerce Fraud Technology Lab has reported an increase of 200% in credit card testing in 2017.
Card testing is a scam that occurs when a fraudster uses a merchant’s website to “test” stolen credit card information to determine if the card is valid. While this mostly affects merchants, consumers are at risk as well. In most cases, liability for fraudulent purchases is limited to USD 50. Nevertheless, it is USD 50 you do not want to have to pay. It also means the inconvenience of having your old credit card cancelled and a new one issued.
Fraud also is up 30% year over year, proving to already struggling retailers that this is just the beginning of online fraud in the post-EMV world. This is all happening in an environment in which the credit card industry has mostly switched over to EVM chip cards, which are supposed to be much more secure than cards with the magnetic strip.