Non-profit organizations often face various challenges when it comes to securing their online fundraising platforms. One significant threat that requires attention is card testing. In this blog post, we will delve into the issue of card testing, its associated risks, and effective solutions to prevent it, including Address Verification Service, donation limits, advanced fraud detection and monitoring tools, and reCAPTCHA. Discover how Snowball Fundraising’s unique machine learning technology dynamically requires verification to help protect your organization.
What is Card Testing?
Card testing is a fraudulent practice where cybercriminals use automated scripts to test stolen credit card information. They attempt small transactions on various websites, including online fundraising platforms, to determine if the card details are valid and active. Once they confirm a card is usable, they use it for larger fraudulent purchases or sell the information on the dark web.
Understanding the Risks:
- Chargebacks: If a stolen card is used on your platform, the legitimate cardholder may dispute the charge, leading to chargebacks. Chargebacks can negatively impact your organization’s reputation and finances, as well as increase the likelihood of incurring fees or penalties from payment processors.
- Loss of revenue: Fraudulent transactions, refunds, and chargebacks can lead to significant revenue loss. This can be particularly damaging for non-profit organizations that rely on donations to support their missions and programs.
- Increased processing fees: Credit card companies may charge higher processing fees for organizations with a history of fraudulent transactions. These increased costs can strain your non-profit’s budget and divert funds from essential programs and services.
- Damaged reputation: Repeated instances of card testing and associated fraudulent transactions can tarnish your organization’s reputation. Donors may be hesitant to support organizations perceived as insecure, potentially resulting in reduced donations and support.
Snowball’s all-in-one fundraising software makes it easy to SAFELY raise more for your nonprofit.
Preventing Card Testing:
- Address Verification Service (AVS): Implement AVS to compare the billing address provided by the donor with the address on file with the credit card company. This helps identify discrepancies and prevent fraudulent transactions.
- Donation limits: Set daily or monthly donation limits to minimize the risk of large fraudulent transactions. This can also deter fraudsters from targeting your platform, as they often seek targets with fewer restrictions.
- Advanced fraud detection and monitoring tools: Use advanced tools to analyze transaction patterns and identify suspicious activity. Snowball Fundraising’s unique machine learning technology dynamically requires verification, helping to detect and prevent card testing more effectively than traditional methods.
- reCAPTCHA: Incorporate reCAPTCHA on your donation page to confirm that users are human and not automated scripts. This simple step can effectively reduce card testing attempts and deter fraudsters from targeting your platform.
- Educate your team: Train your staff and volunteers to recognize the signs of card testing and fraudulent transactions. Ensure they understand the proper procedures for reporting suspicious activity and escalating concerns to the appropriate team members.
By implementing these strategies and leveraging advanced technology like Snowball Fundraising’s machine learning-based verification, non-profit organizations can effectively combat card testing and maintain a secure online fundraising platform. Sign up for a demo or create an account today to experience how our technology can help safeguard your donations. Use the discount code “SAFEDONATIONS” for a special discount on our services. Protecting your organization’s security and maintaining donor trust are crucial for the long-term success of your non-profit.