Card-Not-Present (CNP) fraud refers to unauthorized transactions made without the physical presence of a payment card, which is typical of online/in-app purchases or purchases made by phone. Fraudsters use stolen payment card details to complete these remote payments, with no need to steal or clone a physical card to complete the verification required by face-to-face transactions. The scale of online commerce and speed expected for online payment processing means that CNP fraud remains one of the most prevalent threats in digital commerce.
Use case/ examples for Card-Not-Present (CNP) fraud
Payment fraud: Using stolen credit card information, without the physical card, to make unauthorized purchases or payments, usually online, in-app, or via phone. For example, this includes using skimmed payment card info to buy goods online, or setting up recurring billing for streaming or gaming services with stolen credentials.