Help! Card Not Present Fraud Is on the Rise. What Can I Do to Prevent It?

In my last post, I spoke about card present fraud and EMV.

It’s important to understand the two types of fraud, how they occur, and what you can do to put a stop to it. I suggest you read this article as well: What Is Card Present Fraud?

The second type of fraud that I’ll cover here is card not present fraud. Card not present fraud is online, hacking-type scenarios where someone goes onto an ecommerce site, gets a hold of your data, and attempts to perpetrate fraud using your number

Probably one of the most well-known instances of card not present fraud was the 56 million card numbers that were stolen from servers belonging to Home Depot.

Just as it’s predicted that companies that haven’t upgraded to EMV terminals will be targeted for card present fraud, it’s predicted that card not present fraud will increase, as it did when other countries shifted to EMV. In fact, you’d be hard pressed to find a payments-related article these days that doesn’t suggest an anticipated spike in card not present fraud, now that EMV is in effect in the U.S.

How to Prevent Card Not Present Fraud & Protect Your Business

A great way to secure online transactions is through tokenization. This is where a token — a long string of random numbers — takes the place of valuable private information, such as a bank account number. When a transaction is made, a merchant never sees the customer’s private information, only the token.

Here’s an article on tokenization and its benefits beyond securing data from thieves. I recommend you check it out: Credit Card Tokenization: Data Thieves Can’t Steal What Isn’t Theirs.

Even with the deployment of tokenization, you should know that technology for discovering card not present fraud is ever-changing and is still very much a work in progress. Just as technology continually evolves, the security measures and technology used to secure data is constantly changing, and you can bet that fraudsters will not rollover, but will keep trying to find new ways to discover and exploit stolen payment card data.

That’s why it’s so important to make sure that you’re constantly staying up to date with the best technology. Whether you’re a merchant, a consumer, a point of sale software provider, or you host online transactions, you’ve got to use the best partners … find companies you can trust, so that you don’t have to spend your time educating yourself heavily in an area that isn’t going to add to your bottom line.

If you accept online payments of any kind, then you need to make sure that the payment gateway you use for online transactions has done all the modernization … that they’ve updated and are staying ahead of the curve for online transactions. You also want to make sure you have the ability to acquire a physical payment terminal if you have a customer-facing application.

At Constellation Payments, our tokenization technology employs state-of-the-art encryption, which utilizes a multiple-authority architecture, public-key cryptography and a FIPS 140-2 Level 3 certified hardware security module to store private keys. All this guarantees the absolute best security and protection for your primary account number (PAN) data.

And those physical payment terminals I mentioned earlier? We can help you there too. See our full terminal set here. We offer terminals for every budget — plus you can buy or rent if you’d like. Just give us a call at 888.244.2160 or send an email to and we’ll help you decide on the right terminals for your business.

Rick Ellis is a Business Development Executive with over 20 years of experience running a successful membership-based company built around a lucrative recurring revenue business model. As an Executive for Constellation Payments, a fully integrated and proprietary payment gateway and merchant services provider, as well as for Member Solutions, a leading provider of full-service billing for enterprise businesses, Rick enjoys working through complex business models, and leveraging proven payment processing strategies for maximum effect.

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