Intercash Scam Safety: How Card Fraud Is Evolving

In the latest blog from our Intercash Scam Safety series, we’re taking a closer look at how card fraud is evolving—and what you can do to stay protected.

As the payments world continues to evolve, so too do the tactics of fraudsters. Prepaid cards offer strong security, but no method is immune to today’s increasingly sophisticated scams.

Staying informed is your best defense. That’s why understanding today’s fraud landscape matters. When you know what’s out there, you're in a better position to protect yourself—and Intercash is here to help every step of the way!

Card-Based Fraud Is Changing

The good news? Some traditional types of card fraud are on the decline. Thanks to improved technology and smarter authentication, fraud related to card ID theft, counterfeit cards and lost or stolen cards has dropped significantly over the past year. For instance, counterfeit card fraud—where criminals clone physical cards using data stolen from magnetic stripes—has hit its lowest levels ever.

That’s a win for everyone who values secure payments. But while those numbers are going down, fraudsters are shifting their focus elsewhere.

The Real Threat: Card Not Present (CNP) Fraud

One area seeing a sharp rise is Card Not Present (CNP) fraud—where scammers use stolen card information to make online or phone-based purchases. In fact, CNP fraud surged by 26% in the UK in the first half of 2024 alone, costing consumers and businesses millions.

Why the increase? As more people rely on digital commerce, fraudsters are finding new ways to exploit the gaps in online authentication. Even though Strong Customer Authentication (SCA) is now standard across ecommerce platforms, criminals have adapted. They’re turning to social engineering tactics—tricking cardholders into handing over security codes or one-time passcodes (OTPs) through fake calls, emails or text messages.

This kind of fraud doesn’t involve stealing a physical card. Instead, it involves manipulating the person who owns it. And unfortunately, even the most secure systems can be bypassed if someone is tricked into giving up access.

The Role of AI in Today’s Fraud Landscape

Artificial Intelligence is reshaping the world of card-issuing. When it comes to fraud, AI is being implemented on both sides of the fight. Criminals are now using AI to craft more convincing phishing messages, automate scams and even create deepfake videos to impersonate trusted sources. These tactics make it harder for people to tell what’s real and what’s a scam.

At the same time, financial institutions and payment providers across the industry are leveraging machine learning and data analytics to detect suspicious behavior faster and more accurately. While no system is perfect, these tools play an important role in identifying unusual activity and helping reduce fraud before it escalates.

The key takeaway? As scammers get smarter, the strategies to stop them must evolve too.

Practical Steps You Can Take to Stay Safe

Even with smart systems in place, there’s no substitute for staying informed. Here are a few simple ways to protect yourself and your cardholders:

• Never share your one-time passcode or security code with anyone—even if the message or call looks legit.

  
  

• Use digital or virtual cards when possible. Intercash offers virtual card options that are harder to intercept and can be managed instantly.

  
  

• Enable biometric authentication on your mobile devices and banking apps for extra protection.

  
  

• Regularly monitor your transactions and report anything unusual right away.

  
  

• Be cautious of unsolicited messages that create urgency—like claiming you’ve won something or must act now to secure your account.

  
  

Intercash Scam Safety Starts With Smart Tools and Smarter Users

Whether it be AML best practices or fraud tactics targeting SMBs, the Intercash Scam Safety blog series is all about empowering our users with the tools and knowledge they need to stay secure. From virtual cards to real-time fraud monitoring, we’re committed to helping businesses reduce their risk while enjoying all the benefits of modern payment technology.

Card-issuing is still one of the safest ways for businesses to send payments—but safety isn’t something you set and forget. The tactics may change, but by staying alert and leveraging the right tools, you can stay ahead of the game.

Want to learn more about Intercash Scam Safety or get started with a secure card solution? Get in touch with one of our payment professionals today.