Payment technology provider PayGuard has issued the latest advice for businesses on avoiding credit card fraud, setting out the most prevalent types of fraud that must be protected against.
The London-based business uses technology to help organisations reduce risk, lower their costs, reduce spent on admin, improve security and communicate better, and set out its top tips in a recent blog post.
PayGuard note that credit card fraud is on the rise, with around £671.4 million defrauded in the UK in 2018.
This trend has come amid a fall in the average transaction amount, which was £52 in 2018, down from £66 in 2008.
What this means in terms of fraud though, is that much of it is happening on small transactions, with the most popular mode of fraud in the UK a method dubbed Card-Not-Present which often occurs when a consumer enters their details online or over the phone. This equated to £470.2 million in fraudulent expenditure in 2019.
In terms of how to prevent credit card fraud, PayGuard offered the following methods: pause and resume, data masking, detect and block DTMF tones and staff training.
Pause and resume is a trick that can prevent Card-Not-Present fraud, whereby call recordings are stopped while card details are given over the phone. If a business uses this technology, potential hackers cannot find bank details if they gain access to phone records.
This can be done manually or automatically, with PCI DSS Compliance advising that automated pause and resume is implemented. However, the Financial Conduct Authority require transactions to be recorded in full to prevent fraud investigations being obstructed.
The second method, data masking, can be used in many ways and works by blocking certain elements of a data set in order to make it safe.
Potential options include static marking to prevent insider threats, random substitution (often used for credit card databases), and shuffling.
Substitution is an effective method for obscuring data on an agent’s screen, as it appears authentic to onlookers.
Detecting and blocking DTMF tones relates to preventing cybercriminals from intercepting these tones and interpreting details from them.
These tones can be masked by substituting audible tones for flat ones, which criminals cannot decipher. Implementing such a system can prove a real aid in preventing business fraud and financial exposure.
Finally, training is another essential measure for business with it necessary for employees to recognise potential fraud attempts and warning signs.
Training should include detection and advice on how to act when they suspect it to be taking place.
