<\/span>Understanding the Threat: Corporate Card Fraud Types<\/span><\/h2>\nCorporate card fraud can take various forms, each requiring a different approach to prevention. Here’s a breakdown of the most common types:
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Card-Not-Present (CNP) Fraud:<\/strong><\/p>\nThis is the most prevalent corporate card fraud type, accounting for roughly 75% of all card fraud. It happens when your card details are used to make a purchase without the physical card being present. Here are some common ways CNP fraud occurs:<\/p>\n
Phishing scams:<\/strong> Fraudsters send emails or text messages that appear to be from a legitimate source, such as your bank or a familiar retailer. These messages often try to trick you into clicking on a malicious link or providing your card information on a fake website.<\/p>\nMalware:<\/strong> Malicious software (malware) can be installed on your computer or phone without your knowledge. Some malware can steal your card information when you enter it on a website.<\/p>\nData breaches:<\/strong> When a company’s database is hacked, fraudsters may be able to steal customer information, including credit card numbers. They can then use this information to make unauthorized purchases.<\/p>\nLost or Stolen Card Fraud:<\/strong><\/p>\nThis type of fraud is more straightforward. If your physical credit card is lost or stolen, thieves can use it to make unauthorized purchases. This is why it’s important to report a lost or stolen card to your bank immediately.<\/p>\n
Account Takeover Fraud:<\/strong><\/p>\nThis fraud occurs when someone gains unauthorized access to your online credit card account. They can then use your account information to make unauthorized purchases or transfers. Here are some ways fraudsters might take over your account:<\/p>\n
Account cracking:<\/strong> Fraudsters use various techniques to guess or hack your login credentials. This can be done through automated attacks or by using information obtained from data breaches.
\nSocial engineering: Scammers might use social engineering tactics to trick you into revealing your login information. For instance, they might call you pretending to be from your bank and ask for your credit card details to resolve a fictitious issue.<\/p>\nMerchant Fraud:<\/strong><\/p>\nIn this less common scenario, a seemingly legitimate merchant processes fraudulent transactions on your card. This could be due to a number of reasons, such as:<\/p>\n
Card skimming:<\/strong> Fraudulent merchants may use skimming devices to steal card information from customers who swipe their cards at their terminals.<\/p>\nData breach:<\/strong> If a merchant’s system is hacked, customer card information may be stolen and used for fraudulent transactions.
\nProcessing errors: In rare cases, processing errors by the merchant might lead to duplicate charges or other billing mistakes.<\/p>\n<\/span>Corporate Card Security Tips<\/span><\/h2>\nHere’s a detailed breakdown of security controls you can implement to create a multi-layered defence against corporate card fraud:<\/p>\n
Preventative Measures:<\/strong><\/p>\nThese corporate care rules aim to proactively prevent fraudulent activity from happening in the first place.<\/p>\n
Issuance and Access Control:<\/strong><\/p>\nLimit card issuance:<\/strong> Only issue cards to employees who genuinely require them for business purposes. Don’t assign cards unnecessarily<\/p>\nRight Fit, Right Card:<\/strong> Assign cards with spending limits and functionalities (physical vs. virtual) tailored to each employee’s specific role and spending needs. A marketing manager wouldn’t require the same card as a field technician<\/p>\nSpending Limits:<\/strong><\/p>\nEstablish spending limits for each card based on an employee’s average spending patterns and job responsibilities. This deters unauthorized high-value purchases<\/p>\n
Consider tiered limits for recurring expenses versus one-time purchases<\/p>\n
<\/span>Merchant Category Code (MCC) Controls:<\/span><\/h2>\n
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Card-Not-Present (CNP) Fraud:<\/strong><\/p>\nThis is the most prevalent corporate card fraud type, accounting for roughly 75% of all card fraud. It happens when your card details are used to make a purchase without the physical card being present. Here are some common ways CNP fraud occurs:<\/p>\n
Phishing scams:<\/strong> Fraudsters send emails or text messages that appear to be from a legitimate source, such as your bank or a familiar retailer. These messages often try to trick you into clicking on a malicious link or providing your card information on a fake website.<\/p>\n Malware:<\/strong> Malicious software (malware) can be installed on your computer or phone without your knowledge. Some malware can steal your card information when you enter it on a website.<\/p>\n Data breaches:<\/strong> When a company’s database is hacked, fraudsters may be able to steal customer information, including credit card numbers. They can then use this information to make unauthorized purchases.<\/p>\n Lost or Stolen Card Fraud:<\/strong><\/p>\n This type of fraud is more straightforward. If your physical credit card is lost or stolen, thieves can use it to make unauthorized purchases. This is why it’s important to report a lost or stolen card to your bank immediately.<\/p>\n Account Takeover Fraud:<\/strong><\/p>\n This fraud occurs when someone gains unauthorized access to your online credit card account. They can then use your account information to make unauthorized purchases or transfers. Here are some ways fraudsters might take over your account:<\/p>\n Account cracking:<\/strong> Fraudsters use various techniques to guess or hack your login credentials. This can be done through automated attacks or by using information obtained from data breaches. Merchant Fraud:<\/strong><\/p>\n In this less common scenario, a seemingly legitimate merchant processes fraudulent transactions on your card. This could be due to a number of reasons, such as:<\/p>\n Card skimming:<\/strong> Fraudulent merchants may use skimming devices to steal card information from customers who swipe their cards at their terminals.<\/p>\n Data breach:<\/strong> If a merchant’s system is hacked, customer card information may be stolen and used for fraudulent transactions. Here’s a detailed breakdown of security controls you can implement to create a multi-layered defence against corporate card fraud:<\/p>\n Preventative Measures:<\/strong><\/p>\n These corporate care rules aim to proactively prevent fraudulent activity from happening in the first place.<\/p>\n Issuance and Access Control:<\/strong><\/p>\n Limit card issuance:<\/strong> Only issue cards to employees who genuinely require them for business purposes. Don’t assign cards unnecessarily<\/p>\n Right Fit, Right Card:<\/strong> Assign cards with spending limits and functionalities (physical vs. virtual) tailored to each employee’s specific role and spending needs. A marketing manager wouldn’t require the same card as a field technician<\/p>\n Spending Limits:<\/strong><\/p>\n Establish spending limits for each card based on an employee’s average spending patterns and job responsibilities. This deters unauthorized high-value purchases<\/p>\n Consider tiered limits for recurring expenses versus one-time purchases<\/p>\n
\nSocial engineering: Scammers might use social engineering tactics to trick you into revealing your login information. For instance, they might call you pretending to be from your bank and ask for your credit card details to resolve a fictitious issue.<\/p>\n
\nProcessing errors: In rare cases, processing errors by the merchant might lead to duplicate charges or other billing mistakes.<\/p>\n<\/span>Corporate Card Security Tips<\/span><\/h2>\n
<\/span>Merchant Category Code (MCC) Controls:<\/span><\/h2>\n