{"id":1625,"date":"2025-11-06T06:40:11","date_gmt":"2025-11-06T06:40:11","guid":{"rendered":"https:\/\/platforms.worldpay-bsh.securedataplatform.com\/en\/?p=1625"},"modified":"2025-11-06T06:40:13","modified_gmt":"2025-11-06T06:40:13","slug":"10-types-of-payment-fraud-and-how-software-companies-can-stay-vigilant","status":"publish","type":"post","link":"https:\/\/platforms.worldpay-bsh.securedataplatform.com\/en\/blog\/10-types-of-payment-fraud-and-how-software-companies-can-stay-vigilant\/","title":{"rendered":"10 types of payment fraud and how software companies can stay vigilant"},"content":{"rendered":"
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Consumers reported losing close to $8.8 billion to fraud in 2022, an increase of over 30% from 2021, according to the latest Federal Trade Commission data<\/a>. The top reported frauds included imposter scams, with losses of over $2.6 billion, and online shopping.<\/p>\n\n\n\n

For software companies embedding payments into their platform, being aware of payment fraud is critical for several reasons. The most obvious is to protect cardholder data and minimise fraud but understanding payment fraud will help you prevent and detect these threats, helping you to maintain customer trust, financial growth,\u00a0legal <\/a>compliance, brand reputation, operational efficiency, and a competitive edge.<\/p>\n\n\n\n

Throughout this blog, we delve into what payment fraud is, the most prevalent types of fraud, and introduce payment fraud detection and prevention through the lens of a software company embedding payments into their core product offering.<\/p>\n\n\n\n

If you\u2019re new to payments or trying to\u00a0determine if Embedded Payments are right for you<\/a>, this blog will serve as a helpful introduction to the evolving payments fraud landscape and what to look out for to ensure your payments data is safe from fraudsters and their sophisticated attacks.<\/p>\n\n\n\n

What is payment fraud?<\/h2>\n\n\n\n

Payment fraud is any activity that manipulates payment systems to access funds or financial information illegally. Real-life examples of payments fraud include identity theft, unauthorised purchases, chargeback fraud, refund fraud, and more. These activities can significantly affect businesses and consumers. To protect payments processed through your platform, you\u2019ll want to stay informed about the latest types of fraud and prevention and detection methods.<\/p>\n\n\n\n

Types of payment fraud<\/h2>\n\n\n\n

There are several types of payment fraud that software companies should be aware of to ensure the safety of their users\u2019 financial and payments data. Below are the most prevalent types. We will discuss how to detect and prevent these types of fraudulent activities in the next section.<\/p>\n\n\n\n