The technology-driven market is enormously simplifying the functioning of business operations all across the globe. Customers are having hassle-free experiences, thanks to the helping hand of technology. Many industries have gained from the adoption of various technological enhancements, retail is one of them. The retail industry got a great advantage with the emergence and growth of E-retail. E-retail or E-commerce is the sale of retail goods and services on an online platform with the help of the internet. The concept of e-retail has enabled the owners of stores to have the option of a global audience. It helps in reducing the cost spent on infrastructure which results in saving thousands of dollars. The availability of the vast customer base online helps businesses to grow and expand globally without any geographical barriers. 

However, the current digital era is posing all sorts of new challenges and threats. The immense increase in the usage of technology-driven tools and solutions has no doubt simplified our lives, but the fact that it gave birth to cyber crimes cannot be ignored. Cards Not Present (CNP) is one of the many scams happening on online retailing platforms.

Let us quickly understand the Card Not Present transaction!

A card not present transaction is one where online card payment is made without the actual usage of a physical card. Basically, CNP is a digital transaction performed remotely on an online platform. These types of transactions are most common for e-retail or e-commerce businesses where the customers make payments while purchasing goods and services online. Absence of the physical presence of customers and the actual swiping of cards while making payments has led to the foundation of  CNP frauds. The bad actors get successful with such scams by stealing personal and critical data of different individuals, like the cardholder’s name with their address, three digits pin/CVV, and the expiry date of the respective cards. Moreover, this scam is rising due to the easy theft of such data by the bad actors through online phishing attacks, or illegal buying of data from the dark web. A survey reveals that retailers will supposedly suffer a huge loss of $130 Billion only in a span of 5 years (2019-2023), and the victims of CNP frauds are not only the cardholders but the merchants as well. The rapid use of technology in businesses is presenting an array of loopholes to cyber criminals which they are happily exploiting. Therefore, the owners and merchants indulged in online retailing have to look out for their own security from such sky-rising scams. It is necessary to implement all the preventive measures to fight the bad entities who are continuously rising in numbers as well as getting more sophisticated!

By simply performing (KYC) procedures before permitting a customer to go through the final purchase and payment can easily help in mitigating the risk of fraudulent payments. AZYO’s automated ID verification solution driven by artificial intelligence and its subsets of machine learning plus deep learning makes it possible to accurately process, verify, and authenticate identities at scale. More importantly, the solution is consciously designed to analyze and validate the facial attributes, identify documents, and authenticate users in real-time while kicking out the fraudsters. This helps in ensuring that only legitimate customers are allowed to make purchases and not bots or scammers.