How does CNP fraud occur?ĬNP fraud occurs when a criminal acquires payment information from a cardholder without their permission and uses it to buy products or services. What can make this scenario even worse is that if a gambling platform receives excessive chargebacks within a specific timeframe, its payment service provider may impose penalties on the operator or even terminate their contract. If a cardholder is unable to file a chargeback successfully, then the responsibility for the fraudulent transaction passes to the gambling platform.

The most obvious is that the victim of CNP fraud may be unable to reclaim their lost money. Understanding CNP fraud.ĬNP fraud can be detrimental to businesses and users in numerous ways. It usually constitutes a criminal using someone else’s credit card information and is also seen as a form of identity theft. Discover about the darkest form of identity theft, ghosting fraud, in our blog ‘Ghosting fraud: Are you doing business with the dead?’. Put simply, CNP fraud occurs when a fraudster steals someone’s credit card information for transactions that do not involve a physical card, such as over the phone or on the internet. Fraudsters can therefore steal and use the cardholder’s name, billing address, account number, CVV security code, and expiration date without needing to obtain the actual card. The reason why CNP fraud is so common is because CNP transactions don’t require a physical card, just the details from it.

In fact, overall losses are expected to reach $9.49 billion by the end of the year, marking an 8.5% increase on 2022.

In recent years, card not present (CNP) fraud has become one of the most common types of payment fraud, especially in the online gambling sector.

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