In the restaurant industry, food delivery has grown even more popular during COVID.  Food delivery is not just for pizza, but for all types of meals. Unfortunately, with any new adaptation of digital technology, like online food ordering with delivery, fraudsters are looking for ways to take advantage and find holes in the system to steal other people’s money.

There are 3 ways that fraudsters take advantage of restaurants.

One is called “true fraud.”  That is when someone orders food delivery with a stolen credit card.  He not only gets a free meal but has the opportunity to test whether the stolen credit card is still viable.  In other words, He finds out if the valid owner of the card has yet to figure out their card is compromised.  If not, this fraudster can move on to purchasing more expensive items with the stolen credit card.

The second type of fraud occurs on restaurant order and delivery apps.  When a fraudster steals someone’s login credentials to get a free meal with someone’s credit card on file inside the app.  Another version of this fraud is to use the loyalty points associated with the person’s login credentials to place an  

Restaurants have additional concerns with food delivery besides fraud.  Because food delivery is time-sensitive, people can get anxious if they have to wait too long. They may cancel their card and order from somewhere else.  Since the food has been prepared, the restaurant loses the money and the cost of the food and preparation.  But cutting back on security like asking for the CVV #, having password requirements on their app, verifying responses from automated push notifications, and skipping the receipt signature to save time and money, discourages customers from ordering.

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