"Those fake accounts are being created for purposes like card testing with small-value transactions to see if the number is valid before attempting a bigger transaction,"
"A coupon has a monetary value, and when you do it at scale, it becomes a highly profitable business to use and resell,"
Organized fraudsters create large numbers of new accounts using valid-looking fake email addresses. Those fake accounts are used for card-testing via small-value transactions to verify stolen card numbers before larger purchases. Chargebacks from disputed fraudulent transactions cause merchants to lose the sale, product, shipping costs, and incur processor fees, and repeated disputes can jeopardize merchant relationships with payment processors. Fraudsters also automate signups to harvest promotional discounts, redeem welcome coupons at scale, and abandon accounts after redeeming incentives. Coupon abuse can cost ecommerce businesses tens of billions annually. Fake accounts can be difficult to detect and prevent.
Read at Practical Ecommerce
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