What type of fraud is Power of the Purse most at risk for?

The most applicable type of fraud that Power of the Purse is at risk for is card testing. This fraud involves using stolen card information to make small purchases and verify whether the card is active and can be used for larger transactions. Since Power of the Purse, as a platform or service, may handle a variety of card transactions, it becomes an attractive target for fraudsters who want to check if the card details they have are legitimate.

Card testing usually occurs before larger fraudulent purchases are attempted, and it may involve many small, low-value transactions. Because Power of the Purse may have a variety of payment methods and potentially varying thresholds for monitoring transactions, it might not immediately catch this type of fraudulent activity.

In comparison, while account takeover fraud, friendly fraud, and phishing scams are also significant risks in the online payment ecosystem, they are not as directly aligned with the operational risks faced specifically by platforms like Power of the Purse that process card transactions. Account takeover fraud is focused on gaining access to legitimate accounts, friendly fraud refers to consumers disputing legitimate transactions, and phishing involves fraudulent attempts to obtain sensitive information. However, card testing directly relates to the initial exploitation of payment systems, making it the most relevant concern for this context.