Fraud control types basically fall into 2 groups.
- Application Fraud
- Transaction Fraud
Application Fraud:
In application fraud, the aim is to perform the necessary fraud checks on card and merchant applications to determine whether the applying customer or the application is fraudulent; if fraud is detected, the card/POS application is rejected. In the fraud types seen in application fraud, fraudsters usually apply for a credit card using someone else's identity with their own photo and fake documents. Obtaining the information and documents is another dimension of the fraud. The main ways this information and these documents are obtained are theft, phishing websites, fraudulent phone calls, infected emails, and identity card photocopies collected for various reasons. Credit cards sent to a falsely declared address or person as a result of the card application can easily be used without raising suspicion. For example, card applications made by foreign nationals giving certain districts of Istanbul as their address should be completed only after extra security checks.
Transaction Fraud:
It includes the steps of reviewing transactions made with cards through POS devices against certain monitoring criteria, identifying fraud risks and taking the necessary actions. The essence of transaction fraud control is monitoring transactions made by card/POS. The transactions most often subject to fraud cases are CNP (Card Not Present) transactions.
