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