Card Not Present Fraud (CNP)

Card Not Present Fraud (CNP) refers to fraudulent transactions where a credit or debit card is used for a purchase without the physical card being present. CNP fraud typically occurs online, over the phone, or through mail-order transactions, where the cardholder’s information is manually entered or provided without verification. It involves unauthorized use of stolen or counterfeit card details obtained from data breaches, phishing schemes, or skimming methods. The absence of physical verification makes CNP transactions vulnerable to fraudulent activities, as it is difficult to authenticate the cardholder’s identity, resulting in increased risks for merchants and financial institutions. To mitigate CNP fraud, various security measures are in place, such as two-factor authentication, address verification systems, and fraud detection algorithms, aiming to scrutinize and minimize fraudulent transactions in the card-not-present environment.