what is payment fraud

Payment fraud is a type of financial fraud that occurs when someone intentionally uses false or stolen payment information to make a purchase. This can include stolen credit card information, fake checks, unauthorized electronic fund transfers, and other tactics. Payment fraud is a growing concern for businesses of all sizes and industries, with losses estimated at over $42 billion worldwide in 2020 alone. There are several types of payment fraud, including phishing, chargeback fraud, friendly fraud, and clean fraud. Managing the security of payments has become more complicated with the rise of digital commerce and new payment methods, and the impact of payment fraud on businesses can be significant, including financial losses, damage to reputation, and legal and regulatory consequences