Online credit card fraud is when a criminal uses stolen card information to make fraudulent transactions. It can happen from a data breach, identity theft or when a physical card is stolen. Cybercriminals are developing increasingly sophisticated scams to lure consumers into divulging personal information like card numbers, PINs, card verification values and passwords.

Protect your customers’ sensitive information and minimize your risk of loss. Encryption uses an algorithm to scramble card numbers into a non-readable form. Tokenization replaces card data with a randomly generated surrogate value. M&T can provide you the tools to do both.

Friendly fraud is when a consumer illegitimately files a credit card chargeback, trying to make money off a legitimate transaction. A common example scenario would be an e-commerce customer claiming not to have received an item when in fact they did. If the fraud goes undetected, the criminal is refunded and gets the item for free. The business loses twice.

Friendly fraud can be difficult for retailers to catch. And in trying to investigate this type of fraud, businesses want to be careful not to offend honest customers who have legitimate complaints. E-commerce shipments should always include complete tracking information for best protection.

M&T Bank Merchant Services can help provide up-to-date solutions for card acceptance security, chip technology, PCI compliance, encryption and tokenization that can combat all types of credit card fraud, including friendly fraud.