Fraud rings attacks can include a range of tactics, including paying with stolen credit cards, chargeback fraud involving complicit cardholders, selling fake e-gift cards, or creating schemes to create large-scale layered fraud against multiple merchants.
The main feature of a fraud ring is the coordinated and linked efforts of multiple fraudsters to steal from and defraud merchants. These are deep, premeditated fraud attacks that can last for years before being detected.
What differentiates a fraud ring from a small-time criminal is the level of sophistication involved in fraud ring attacks. Think of the people behind fraud rings as professional fraudsters – they approach their “job” just as seriously as anyone else. They take advantage of the latest in technology, communication, and payments to make it easy for them to succeed at defrauding merchants.
The good news is that even with a high-level of professionalism and technological superiority, fraudsters do get caught. Thanks to the high-level of scrutiny and sophistication in modern payments technology, it’s getting harder for fraud rings to go undetected.
Merchants using payments solutions that monitor for out-of-context sales, IP address data and traffic, the frequency of sales from one device or cardholder, or other high-risk sales indicators are able to beat fraud rings at their game. Remember, fraud rings look for merchants who are not using the latest in modern payments solutions.