Payment Fraud

What is Payment Fraud?

Payment fraud is any type of illegal or unauthorized transaction carried out by a cybercriminal to gain money or property. This often involves the use of stolen credit card information, identity theft, or manipulating payment systems to divert funds.

Why It Matters

• It causes direct financial losses for businesses through lost inventory, shipping costs, and chargeback fees.

• High levels of fraud can lead to a merchant being placed in monitoring programs by card networks, resulting in higher fees.

• It erodes customer trust and can damage a brand’s reputation if users feel their financial data is not secure.