Credit card fraud involves the theft of a physical card, or the compromise of data associated with a card account. Merchants often carry liability for the acceptance of fraudulent transactions, particularly if the transaction is processed without the card present. Please beware of these suspicious behaviors to help protect your business:
- Relay calls: A relay call is an operator-assisted telephone call, usually used by someone who is hearing impaired. While this is a valid service, criminals have also used the service to place fraudulent orders. We recommend you request a Code 10 authorization request for all orders obtained via relay call.
- Customers ordering large quantities of the same or similar item. Also be cautious of large bulk orders with a shipping address of an apartment or self-storage unit.
- Customers who provide multiple card numbers for the same purchase, especially when the card numbers are only different by the last few numbers.
- Requests for overnight delivery, without regard to cost.
- Customers who request immediate processing of the order and want the tracking number used for the shipment ASAP.
- Customers who place phone orders, requesting immediate processing of the order, and then advising they will have someone come to the store location to pick-up the product.
- Requests for delivery to an alternate address, other than the billing address, or shipment to a freight forwarder. (Criminals will use United States based re-shippers to avoid detection of foreign shipments).
- Requests for charging the card for product + freight charges, and asking the merchant to pay the shipper in cash.
- Requests for merchandise you do not sell. Most common requests are for cell phones and laptop computers.
- Communication via a free email service (Yahoo, Hotmail, Gmail, etc).
For additional information about fraud prevention and education, please call NAMS at (888) 256-6267 and/or visit one of the following resources:
http://usa.visa.com/merchants/risk_management/index.html Visa USA Risk Management
http://www.mastercard.us/merchants/security/index.html MasterCard Security
www.ic3.gov Internet Fraud Complaint Center (IFCC) The IFCC is a partnership between the FBI and the National White Collar Crime Center. This site allows victims of Internet fraud to report fraud online to the appropriate law enforcement and regulatory authorities.
http://zip4.usps.com/zip4/welcome.jsp United States Postal Service website to validate an address physically exists. This does not confirm that a person lives at the address, but does confirm the address is real.
www.forwarders.com This is a list of freight forwarders. Many times international criminals will ship to these addresses and have the order sent on by the freight forwarding company.