Fraud Method :
International Revenue Share Fraud (IRSF)
Problem- We see a number of small payments on customer accounts with credit/debit cards via our IVR. Payments are usually $5 - $15 each transaction and can go up to 5 times per day. We think fraudsters are socially engineering customer passcodes and processing these payments to test the payment cardsâ€™ validity. We suspect the successful payment cards are then used for higher purchase fraud with other merchants. Unsuspecting customers are receiving a valid credit on their accounts.
Weâ€™d like to know if this is happening to other service providers and obtain any best practices that can be shared to remediate it.
Please respond back on the info share or directly to me via email.
Generally Credit / Debit card issuers (banks) monitor customer behavior and daily transaction usage, what fraudsters do with this practice is mimic the typical Credit / Debit Card Holders behavior so their transactions are running under the radar and doesn't hit any threshold on banking monitoring systems, if the security staff at banks noticed small transactions between 10-15 USD looks as the card holder is making some shopping, if the fraudster turn to be more ambitious and hit transactions above $20 USD this is not typical client behavior and can potentially receive alerts until fraud is confirmed and the card gets blocked all transactions re-found or cancelled.