5 Common Payment Fraud Tactics and How to Stop Them

Fraudsters are getting smarter. Learn the top 5 payment scams in 2024 and how Paynet’s security tools block them before they happen. 

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Introduction: The Rising Cost of Payment Fraud

Payment fraud cost businesses **$48 billion globally in 2023**, and attacks are only growing more sophisticated. From phishing scams to AI-powered deepfakes, fraudsters exploit every weakness.  

The good news? With the right tools, you can **stop fraud before it strikes**. Here are **5 common tactics**—and how Paynet shuts them down.

1. Card Skimming (ATM & E-Commerce)

How It Works: Criminals install hidden devices on ATMs or fake payment pages to steal card details.  

Real-World Example: A major retailer lost $2.5 million after hackers injected malware into checkout pages.  

Paynet’s Solution:

✔ Tokenization – Never stores raw card numbers.  

✔ Behavioral Biometrics – Detects fake checkout behavior.

2. Phishing & Social Engineering

How It Works: Fake emails or calls trick employees into revealing login credentials.  

Real-World Example: A CFO wired $1 million to a scammer posing as a vendor.  

Paynet’s Solution: 

✔ Multi-Factor Authentication (MFA) – Blocks unauthorized logins.  

✔ AI-Powered Email Scanning – Flags suspicious requests.

3. Chargeback Fraud (“Friendly Fraud”)

How It Works: Customers falsely dispute legitimate charges to get refunds.  

Real-World Example: A travel site saw 30% of bookings disputed after use.  

Paynet’s Solution:  

✔ Dispute Resolution Hub – Collects evidence to fight fraud.  

✔ Transaction Anomaly Detection – Spots high-risk purchases.

4. Account Takeover (ATO) Attacks

How It Works: Hackers use stolen passwords to hijack user accounts.  

Real-World Example: A food delivery app lost 500,000 accounts in one breach.  

Paynet’s Solution:

✔ Biometric Login – Requires face/fingerprint verification.  

✔ IP & Device Fingerprinting – Alerts on unusual logins.

5. Triangulation Fraud (Fake Stores)

How It Works: Scammers set up fake e-commerce sites, steal card data, and disappear.  

Real-World Example: A fake “designer sneaker” store scammed 10,000+ buyers.  

Paynet’s Solution:  

✔ Merchant Vetting – Verifies legitimate businesses.  

✔ Real-Time Fraud Scoring – Blocks high-risk transactions.

Final Thoughts: Stay One Step Ahead

Fraud evolves, but so does security. Paynet combines AI, encryption, and 24/7 monitoring to keep your business safe.  

Want a fraud-proof payment system?

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