FAQs About How To Reduce Velocity Attacks On Your Merchant Account

FAQs About How To Reduce Velocity Attacks On Your Merchant Account

Data breaches aren’t the only form of attacks that lead to credit card and bank fraud. Merchants are also at risk of generating a liability due to a velocity attack. The following are FAQs about how to REDUCE VELOCITY ATTACKS ON YOUR MERCHANT ACCOUNT.

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What are Velocity Attacks?

Velocity attacks originate from an attacker making attempts to acquire validation for credit card numbers. They submit credit card numbers stolen from point-of-sale terminals and alternative measures to the company’s current terminals or e-commerce website. These attacks continue until the attacker verifies the credit card number and steals all available funds.

Why Should Merchants Set Limits on Refunds?

By restricting the volume of refunds available each hour, the merchant lowers the risk of a velocity attack. This strategy prevents attackers from acquiring funds via multiple refunds for purchases. They exploit the user’s information to determine the value of their recent purchases. If the company doesn’t limit the volume of refunds, the velocity attacks generate at record speed.

Why Set Up Limits for Maximum Sales Transaction Values?

The business owner is aware of their average sales per hour. They calculate their average based on recent sales volumes. They use this information to set parameters to restrict the value of sales generated each hour. By placing restrictions, they limit the value of merchandise the attacker can acquire within any given hour. With these restrictions, they discourage the attacker from continuing their pursuits for continued identity theft.

What is the Purpose of Setting Limits on Transaction Volumes?

The total number of transactions completed each hour enables the merchant to calculate an average. This average reflects the total volume at which the merchant should restrict their sales each hour. By presenting a limit, they stop the merchant from submitting multiple credit card numbers at a high velocity. The strategy prevents them from speeding through the collected credit card numbers until they find a valid account.

Why Should Merchants Monitor IP Addresses for Transactions?

An e-commerce website collects IP addresses linked to each sales transaction completed. With the right security measures, their information system identifies multiple instances in which a given IP address appears in their sales log. As they identify a higher-than-average number of visits and transactions, they can block the IP address and prevent further transactions. They can prevent sales generated from the IP address as well as refunds requested. This reduces the total purchases completed via fraudulent measures.

What is a Velocity Filter and How Can It Help?

A velocity filter is a program that reads IP addresses that submit different credit card numbers within a one-hour window. Once the IP address is identified, the system rejects the transaction automatically. The attacker won’t have the opportunity to enter additional credit card information they have collected. They are blocked and lose all access to the system.


Once the filter is installed and integrated into the e-commerce system, the merchant can eliminate the limitations they imposed to protect their customers. The system automatically collects IP addresses and stores them for an immediate assessment.

Merchants need to mitigate risks associated with credit card fraud. A velocity attack is the submission of stolen credit card numbers to identify what accounts are valid. Once the accounts are verified, the attacker uses them to gain access to funds and merchandise. Merchants that need further help to REDUCE VELOCITY ATTACKS can read more now.

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