What is package rerouting fraud?

Package rerouting fraud is when a fraudster uses a stolen credit card to make a physical goods purchased. The fraudster will use the legitimate cardholder’s address to make sure the purchase gets past the front end fraud filters, but when the package is shipped they change the address. This means that the fraudster now has the goods and the merchant will get hit with a true fraud dispute. True fraud is when a fraudster uses a stolen card to make a purchase which then the actual cardholder disputes the charge. True fraud disputes are not winnable by the merchant. This is because merchants are liable for true fraud charges through Zero Liability Policies. For example, Visa’s Zero Liability Policy is: Read more…