Types of Transaction Frauds

Fraudulent Claim

Fraudulent claims refer to claims which are made illegitimately in order to gain cash rebates or points. This occurs when a fraudster generates or purchases fake receipts to claim them for rewards. Alternatively, a fraudster can also make a refund for a huge purchase after redeeming it for a high value reward.

See Relevant Scenario

Loyalty Fraud

Loyalty fraud occurs when a fraudster takes over a loyalty account and gains access to the loyalty points in the account. The fraudster can proceed to either sell the account on the dark market or transfer the points into another dummy account for the redemption of goods or services.

See Relevant Scenario See OVO Case Study

Promo Abuse

Promo abuse refers to the exploitation of promotions to gain cash, goods or services. This occurs when fraudsters create several fake accounts to redeem first-time user incentive bonuses, or to gain referral codes to maximize the
incentives given
for referring other users.

See Relevant Scenario See OVO Case Study See Razer Case Study

Fraudulent Payment

Fraudulent payments occur when a fraudster uses a stolen credit card to make unauthorized purchases.

See Relevant Scenario See OVO Case Study See Scalefast Case Study See Razer Case Study

Fraudulent Transfer

Fraudulent transfers occur when a user gets hold of and takes over another user’s account, subsequently transferring the points out to another account, either his own or a shell account. Alternatively, the fraudulent user can choose to sell the points for cash or redeem them for rewards.

See Relevant Scenario See OVO Case Study

Withdrawal Fraud

A fraudulent withdrawal takes place when a user tops up his account with stolen credit cards, and then depletes his account balance either by making purchases or withdrawing cash. Alternatively, a fraudster can take over a user’s account and make unauthorized withdrawals.

See Relevant Scenario See OVO Case Study