Card not present fraud
Card not present fraud occurs when neither the card nor its' holder is present at the point of sale, as happens in telephone, fax or Internet transactions.
System to combat card not present fraud
An automated address and card verification system has been made available in the UK, to reduce fraud at retailers who accept card-not-present transactions.
Cardholders making a transaction via the phone, mail order or Internet are now asked to provide their full statement address and a three or four digit number, known as the Card Security Code, printed in or just below the signature panel.
In the majority of cases, criminals would not be able to provide the real cardholder's address and the code on the back of the card