| Mail Order companies and E-Commerce Web | | | | Addresses. The majority of credit card |
| operators are constantly faced with a higher | | | | scammers use free e-mail addresses from |
| chance of incurring a fraudulent credit card | | | | HotMail, Yahoo and other free e-mail |
| transaction than are merchants who operate | | | | providers. |
| physical storefronts. | | | | |
| | | | 4. Keep all transaction documentation. Make |
| Because neither the Cardholder nor the card | | | | sure that your shopping cart stores the I.P. |
| is physically present during the transaction, | | | | address that the customer used when visiting |
| the merchant has no real way of easily | | | | your site as well as the date and time of the |
| determining whether or not they are dealing | | | | visit. This information will be helpful if |
| with a legitimate customer. | | | | you are involved in a fraud investigation. If |
| | | | you have telephone contact with the customer, |
| According to a report recently issued by the | | | | add their Caller ID information to the order |
| U.S. Federal Bureau of Investigation (F.B.I.) | | | | record. |
| in conjunction with the Internet Crime | | | | |
| Complaint Center (IC3): | | | | 5. Be Suspicious of first-time high order |
| | | | amounts. If your first contact with a new |
| "Credit and debit card fraud comprised 6.3% | | | | customer is for an unusually high dollar |
| of all complaints received in 2006." | | | | amount, especially if they are requesting |
| | | | overnight delivery services, phone the |
| This represents over $60 Billion (.U.S.) in | | | | customer to verify their contact information. |
| lost revenue to merchants that accept credit | | | | |
| and debit cards for on-line transactions. | | | | 6. Verify customer telephone numbers and |
| While some of those losses are covered by the | | | | addresses using any of the free White pages |
| Issuing Bank, who may often reimburse the | | | | web sites such as |
| merchant's if all of the bank's card | | | | |
| acceptance and processing rules were followed | | | | 7. If in doubt, call the customer. You can |
| exactly, some of that loss may still be | | | | usually avoid being scammed by simply getting |
| passed back to the merchants in the form of | | | | the customer on the phone at the telephone |
| charge backs. | | | | number they provided on the order form. If |
| | | | you are unable to reach the customer, or if |
| You can help reduce your risk of experiencing | | | | the person at that number has no idea who the |
| credit card fraud by following these tips: | | | | customer is, cancel the order. It's better to |
| | | | be safe than sorry. |
| 1. Review all Orders Carefully. Ensure that | | | | |
| the customer filled in all of the appropriate | | | | 8. Make sure that your order form requires |
| fields on the order form. Check to make sure | | | | the customer to enter the Card Verification |
| that the order passed your credit card | | | | Value (CVV) number that is printed on their |
| processor's Address Verification Check (AVS). | | | | credit card. And make sure that your software |
| Most fraudulent credit card transactions fail | | | | passes this value along to your credit card |
| to pass AVS. | | | | processor. Knowing the CVV usually means that |
| | | | the cardholder is in physical possession of |
| 2. Be suspicious of orders with a different | | | | the credit card and not just using a stolen |
| Ship To and Bill To address unless the order | | | | number that they got from somewhere. |
| is from an existing customer and this is part | | | | |
| of their normal ordering process. Even so, | | | | While there is no guarantee that following |
| stay alert if the customer has entered a | | | | these 8 steps will reduce your credit card |
| different Ship To address from the one that | | | | fraud experience completely, there's every |
| they normally use. | | | | chance that you can cut it back dramatically |
| | | | by simply being alert and following up on |
| 3. Be alert for the use of Free Email | | | | your suspicions. |