Essential Industry Terms Explained

First-party fraud occurs when an individual intentionally misrepresents their identity, financial situation, or intentions to gain financial benefits or avoid obligations. Unlike third-party fraud, where external actors exploit stolen information, first-party fraud is...

3D Secure is an authentication method designed to reduce fraud and increase security for online card transactions. Originally sponsored by Visa under the 'Verified by Visa' brand, Mastercard and...

What is 3rd Party Fraud? Refers to any fraud committed against a financial institution or merchant by an unrelated or unknown third-party. While there are many different kinds of fraud, there are 3...

419 Fraud is a type of advance-fee fraud in which individuals or companies receive unsolicited emails or letters promising a percentage of a large sum of money in return for allowing funds to pass...

A/B testing is a research method in which two groups, a control group (representing the current strategy) and an alternate group (representing a hypothesis for an improved strategy), are tested...

Discover how ACH fraud happens, its financial impact, real-world examples, and key prevention tips. Learn how to protect yourself and your business from electronic payment threats in this helpful guide.

AI or Artificial Intelligence is broadly used to describe the simulation of the processes of human intelligence by computer systems. The processes simulate human learning in that the systems start...

Discover why AI explainability matters! Learn how transparent AI builds trust, ensures compliance, and empowers users—plus real-world use cases, stats, and FAQs to help you navigate ethical AI.

Curious about AI model bias? Learn what it is, why it matters, real-world examples, and how to tackle it for fairer, more reliable AI. Dive in for key insights and practical solutions!

Discover how AI-powered fraud detection uses machine learning to spot suspicious activity in real time, reduce false positives, and help businesses stay ahead of evolving fraud threats.

Discover how AI-powered identity verification is transforming security and efficiency across industries—boosting fraud detection, streamlining onboarding, and keeping your data safe in the digital age.

Discover the essentials of Anti-Money Laundering (AML): its importance, techniques, challenges, use cases, and the role of technology in fighting financial crime across industries. Read on to learn more!

Discover how API Injection Fraud threatens data security, the latest attack trends, and practical prevention strategies to help protect your business in an increasingly vulnerable digital landscape.

AVS or Address Verification System is a payment processing system comparison of the numerical portions of billing and shipping addresses with the addresses on file at the credit card-issuing bank. A...

Discover how account chaining connects multiple accounts across platforms, streamlining operations, boosting security, and helping businesses detect and prevent fraud with advanced technology.

Learn how Account Enumeration Attacks work, why they're a threat, and discover key strategies to protect your business from cybercriminals targeting your login systems. Stay secure with expert tips!

Discover how fraudsters open accounts using stolen or fake identities, the risks involved, and key strategies to detect and prevent account opening fraud in today’s digital financial landscape.

Learn how Account Takeover (ATO) fraud works, its impact, and ways to protect your accounts. Explore real-world examples, prevention tips, and the latest trends in online security.

Account Takeover (ATO) is a form of fraud where a malicious actor gains unauthorized access to a user’s online account. This is typically achieved through stolen login credentials obtained via phishing, data breaches...

Discover how Account Velocity Monitoring helps detect fraud and secure your accounts by tracking unusual transaction patterns, ensuring both safety and trust in your financial activities.

The Acquiring Bank, also known as the merchant acquirer or the merchant bank, is the bank that is responsible for settling credit and debit card transactions on behalf of the merchant. Its...

Active Authentication is a security and authentication method in which the user is challenged with questions about what he/she knows (knowledge-based), has (possession-based) or is (biometric-based).

Discover how Ad Hoc Fraud Reporting enables flexible, real-time detection of suspicious activities, helping organizations quickly respond to evolving fraud threats with customized data insights.

Discover how fraudsters manipulate addresses to intercept goods, mislead billing, and commit identity theft—and learn key strategies to protect your business and personal data from these schemes.

Advance-Fee Fraud is a common fraud scheme generally involving a criminal tricking a victim into paying an up-front fee with the promise of a larger reward paid out later.

Discover how adversarial AI manipulates machine learning models, its real-world risks, and the strategies businesses can use to detect, prevent, and defend against these sophisticated cyber threats.

Discover how Adverse Media Screening helps businesses manage risk, ensure compliance, and protect their reputation by identifying negative news about clients and partners. Learn methods, challenges, and trends.

Discover how affiliate fraud threatens brands, common scam tactics, recent statistics, and effective solutions to protect your business and maximize ROI. Learn how to safeguard your affiliate programs today!

Discover how algorithmic trading fraud works, its impact on markets, and how advanced AI solutions help detect and prevent manipulative practices to ensure fair, secure trading for all participants.

Discover how fraudsters exploit non-traditional credit data, the risks to financial institutions, and key strategies to prevent alternative credit scoring fraud in today’s evolving digital lending landscape.

Discover how alternative data—like social media, geolocation, and web traffic—offers deeper insights, boosts fraud prevention, and enhances decision-making across industries. Explore the benefits and challenges!

Discover how anomaly detection uses AI and machine learning to spot unusual patterns, boost security, and prevent fraud in finance and e-commerce. Learn its importance, uses, and future trends.

Discover how fraudsters use anonymous proxies to hide their identity, bypass security, and commit online fraud. Learn risks, detection methods, and strategies to protect your business from proxy-based threats.

Application fraud occurs when a person provides false, stolen, or manipulated information in a formal application process to obtain products, services, or credit. Commonly seen in industries such as financial services, telecommunications...

Discover how application spoofing works, the risks it poses to users, key real-world examples, and effective strategies to protect your data from fraudulent apps in this essential security guide.

In the world of online betting and gambling, an arber is a person who takes advantage of discrepancies in gambling sites odds, so as to ensure that no matter what party wins a contest (i.e. a race),...

Discover how APG Mutual Evaluations help Asia-Pacific countries strengthen anti-money laundering efforts, ensure compliance, and enhance regional financial security. Learn key stats and practical uses inside!

Discover how Australia’s AML/CTF Act protects the financial system from money laundering and terrorism financing, key compliance stats, use cases, and how smart technology can help businesses stay compliant.

Discover how authorization fraud happens, its impact, and how to protect your business and personal accounts from unauthorized access. Stay informed with key stats, real-world examples, and expert tips.

Discover the key risks in Automated Clearing House (ACH) payments—credit, fraud, and operational—and explore strategies to enhance security, ensure compliance, and protect your transactions.

Discover how automated decisioning uses AI and data to boost accuracy, efficiency, and fraud detection—transforming business processes and empowering smarter, faster decisions across industries.

Discover how Autonomous Risk Decisioning uses AI to automate risk management, enhance decision speed and accuracy, and transform industries like finance, e-commerce, and more.

B2B or Business-to-Business refers to a business that sells products or provides services to other businesses.

Discover how B2B payment fraud impacts businesses, common tactics used by fraudsters, and practical strategies to protect your company from financial threats in this essential guide.

B2C or Business-to-Consumer refers to a business that sells products or provides services to the end-user consumers. Another variation of this concept is D2C (direct to consumer) in which a...

Discover how Bank Identification Numbers (BINs) enhance payment security, streamline transactions, and help prevent fraud in today’s digital banking world. Learn more about their critical role!

A route through which legitimate users or criminals can bypass security systems in order to access the data they’re after. Contrasts with a front door attack, where a virus or attack is done with...

Discover how backdoor attacks threaten machine learning and online systems, explore real-world cases, recent stats, and learn defense strategies to keep your business secure in today’s digital landscape.

Baiting describes the situation where a fraudster leaves something out like a USB drive, enticing somebody to pick it up and see what content is on it. The fraudster loads the USB drive up with...

Learn how balance transfer fraud works, its impact, prevention tips, and how financial institutions and AI tools like FraudNet can help protect you from growing credit card scams.

Discover how Bank Account Verification APIs boost financial security, streamline verification, and reduce fraud in fintech and banking—enhancing trust and efficiency for modern digital transactions.

A BIN Number or Bank Identification Number is assigned to a bank for its own credit card issuance. The first six digits on a credit card constitute the Bank Identification Number, otherwise known as...

Discover how the Bank Secrecy Act (BSA) combats money laundering and fraud, and learn how financial institutions comply and protect the integrity of the financial system.

Discover how Bank for International Settlements (BIS) Guidelines strengthen global banking stability, manage risk, and shape safer financial systems for banks, businesses, and individuals worldwide.

Discover how Banking-as-a-Service (BaaS) is transforming finance—enabling businesses to offer banking services, boosting innovation, and expanding access for consumers and startups alike.

Discover how modern technology and advanced tools are making banknote counterfeit detection more accurate, helping businesses and individuals stay protected from fake currency. Learn more inside!

Explore what bankruptcy fraud is, its common forms, legal consequences, and modern prevention strategies. Learn how technology and transparency can help protect against financial misconduct.

Discover how Behavioral Analytics helps businesses understand user actions, predict trends, prevent fraud, and optimize strategies for a better customer experience and smarter decision-making.

Discover how Behavioral Anomaly Detection uses AI and real-time monitoring to spot unusual behavior, helping organizations prevent fraud, enhance security, and stay ahead of emerging threats.

Discover the importance of Beneficial Ownership Identification, its role in transparency, compliance, and fraud prevention, plus how technology streamlines the process for businesses and regulators.

Discover what Bin Attacks are, how they expose hash function weaknesses, their impact on fraud and cybersecurity, and learn ways to protect your business and data from these evolving digital threats.

Discover how biometric authentication boosts security and convenience using fingerprints, facial recognition, and more—plus, explore use cases, benefits, privacy concerns, and the latest industry stats.

Discover what biometric spoofing is, how it threatens security systems, real-world cases, and the latest stats—plus prevention tips to help you stay safe in an evolving digital landscape.

The most famous and popular cryptocurrency. While it is often thought of as an anonymous payment method, bitcoin (BTC) is actually pseudonymous, which means it is possible to track someone’s payments...

Discover how blacklists and whitelists protect your systems, prevent fraud, and enhance cybersecurity. Learn key differences, challenges, and best practices for secure, efficient access control.

Discover how blockchain analytics enhances fraud detection, compliance, and market insights—empowering businesses to make smarter, safer decisions in the evolving world of digital assets.

Discover how botnet fraud works, its impact, and ways to protect your business from evolving cyber threats. Learn key stats, real-world examples, and modern solutions for stronger security.

Discover how bounty scams trick participants with false reward promises, the tactics scammers use, recent trends, and tips to protect yourself—all in our comprehensive guide to bounty scams.

Discover what breach fatigue is, why it happens, and its impact on individuals and businesses. Learn strategies to stay vigilant and protect yourself in today’s world of frequent data breaches.

Learn how Breach Notification Laws protect your data, why timely breach alerts matter, and what penalties organizations face for non-compliance. Stay informed and empowered in today’s digital world.

The term originates from the drug dealing world, and is used to describe inexpensive mobile phones designed for temporary use. It allows fraudsters and criminals to link an account to a disposable...

Learn the essentials of Business Continuity Planning (BCP)—why it matters, key steps, real-world use cases, and how to keep your business resilient during disruptions. Start building your BCP today!

Discover how business identity theft happens, its impact, and how to protect your company from fraud. Learn key prevention tips, real-world examples, and the latest industry statistics in our guide.

Discover how Business Logic Fraud exploits process loopholes, real-world examples, and strategies to protect your business from hidden threats. Learn prevention tips and industry insights in this guide.

Discover how Buy Now, Pay Later (BNPL) fraud works, its impact on consumers and businesses, and the latest trends and prevention tips to help you stay protected in the evolving payments landscape.

The fraudster term for stolen credit card data. A full CC contains the original cardholder’s name and address, expiration date, and CCV. It becomes a Fullz when other personal data points are added...

Curious about Card-Not-Present (CNP) fraud? Learn what it is, its impact, real-world examples, and the latest prevention tips to keep your online transactions safe from digital threats.

What is a CVV? The card verification value (CVV), is a three- or four-digit code on the back of a debit or credit card. It is sometimes referred to as a CID, or card identification number. This...

Discover how Canada’s AML/CTF Act combats money laundering and terrorist financing, what it means for businesses, and how to ensure compliance for a safer, more secure financial environment.

Learn how Card BIN attacks exploit credit card numbers, the risks they pose to businesses and consumers, and discover effective prevention strategies to safeguard against this growing fraud trend.

Discover how card cloning works, its risks, and the latest prevention tips. Learn how to protect yourself from fraud and stay secure with expert insights and actionable advice.

Discover how Card Not Received Fraud happens, why it’s a growing threat, and the latest solutions to keep your finances safe. Learn key prevention tips and industry insights in this quick guide.

Learn how card skimming works, its impact, and how to protect yourself. Discover the latest prevention strategies and statistics in this essential guide to staying safe from card fraud.

Card-not-present (CNP) fraud occurs when a payment card is used to make a purchase without the cardholder being physically present. This type of fraud typically takes place in online, phone, or mail transactions...

What is carding? Carding is the general fraudster term for using stolen credit card data, whether it’s used for direct purchases, or charging prepaid or gift store cards, which fraudsters then...

Discover how Cash App scams work, common tactics used by fraudsters, recent statistics, prevention tips, and how to protect yourself from financial loss. Stay safe with our expert insights!

Discover how cash transaction monitoring keeps your money safe by detecting suspicious activity, ensuring regulatory compliance, and preventing fraud with advanced technology and smart analytics.

A form of social engineering where fraudsters and criminals create fake online identities to lure people into emotional or romantic relationships for personal or financial gain. Online seduction and...

The Certified Fraud Examiner (CFE) is a qualification issued by the Association of Certified Fraud Examiners (ACFE). The ACFE organization is a provider of anti-fraud education and training. CFE...

Discover how Chargeback Abuse Analytics empowers businesses to detect and prevent fraudulent chargebacks, streamline dispute management, and protect revenue with advanced data-driven insights.

Chargeback fraud, sometimes referred to as "friendly fraud," occurs when a consumer disputes a legitimate transaction with their bank or payment provider and requests a chargeback—reversing the payment—claiming the transaction was...

Explore the essentials of chargeback management, its importance, key strategies, industry stats, and how AI tools like FraudNet help businesses reduce losses and improve dispute resolution.

Learn how to spot and prevent charity fraud. Discover common scams, real impacts, practical tips for safe giving, and ways technology can help protect your donations and support genuine causes.

What is Click Fraud?  Click fraud is a form of marketing fraud that occurs when pay-per-click (PPC) online ads are illegally clicked to increase site revenue or exhaust a company's budget. It is...

What is Clickjacking? In summary, clickjacking is when a fraudster targets someone to click a link, either to get them to install malware or to try to 'phish' them, a related term that involves...

Discover how clustering algorithms help group and detect fraudulent transactions, revealing hidden patterns and boosting fraud prevention. Learn key techniques and real-world applications in our latest blog!