| Learn what steps to take to protect your | | | | prevention methods for well known techniques of |
| business from credit card fraud ! | | | | committing credit card fraud. |
| Online credit card fraud is happening more and | | | | Card Not Present Fraud |
| more. | | | | CNP fraud is among the fastest rising category of |
| The chances of your online business being | | | | fraud. The main reason for this is that it is |
| exposed to credit card fraud is very high and | | | | becoming much harder to commit fraud in person, |
| using the following will greatly reduce credit card | | | | especially with the introduction of Chip and Pin. As |
| fraud: | | | | online credit card fraud increases there are some |
| Cramming Protection - Prevent the use of credit | | | | measures that all merchants can take to ensure |
| card or ACH number generating schemes by | | | | their associated costs of being exposed to online |
| limiting the number of transactions allowed from a | | | | credit card fraud can be reduced. |
| given IP address. | | | | Ï Call back customers to confirm orders. |
| Domain Blocking - Filter transactions by the | | | | Although this is also a cost center, it could be |
| Internet domain associated with the customer's | | | | used as a technique when the transaction appears |
| email address. | | | | somewhat out with the ordinary |
| Country Blocking - Filter transactions by the | | | | Ï Pay attention to transactions where the |
| Internet domain associated with the customer's | | | | delivery address and cardholder address are |
| country code. | | | | different |
| Prevent Duplicate Transactions - Track recent | | | | Ï AVS or CSC verification doesn't remove risks |
| transactions to ensure the same transaction is not | | | | 100% but it removes the ability for fraud to be |
| authorized more than once. This eliminates | | | | done base solely on acquiring account details with |
| problems due to "double clicking" the transaction | | | | out having the credit card in person. |
| submit button as well as duplicate submittal of | | | | Card Present Fraud |
| batch transactions. | | | | Card Present Fraud has become increasingly hard |
| IP Activity Limit - Limit the number of accepted | | | | to commit, and as a result it is no longer |
| transactions from a given IP address. | | | | associated with being a white collar crime as is |
| Large Transaction Notification - This feature | | | | often the case with CNP fraud. Despite this, face |
| examines the transaction amount after the | | | | to face or swiped card fraud can still be an issue |
| transaction has been accepted. When the amount | | | | which retail merchants still have to deal with. |
| exceeds an amount specified by the merchant an | | | | Following certain protocols can help to limit the |
| e-mail is sent notifying the merchant that the | | | | chances of you being affected, and ensure that |
| amount has exceeded the threshold. The | | | | your business is refunded by following the correct |
| merchant can then review the transaction, refuse | | | | procedures. |
| the sale before any products are shipped, and | | | | Ï Train employees to be on the look out for |
| credit back the consumer at a later time. | | | | people who appear nervous or uncomfortable. |
| Address Verification (AVS) - AVS matches the | | | | They should not confront then based on that |
| known address information associated with the | | | | alone, but they should certainly be discreetly |
| given credit card number against the billing | | | | vigilant when they do. |
| address information provided by the user. If the | | | | Ï Check that the card number that is |
| information does not match, the transaction is | | | | embossed matches the card number on the |
| declined. The merchant has the option of choosing | | | | receipt. Pay particular attention to the last 4 digits |
| the level of match required for an approved | | | | if this has to be done discreetly and promptly. If |
| transaction. | | | | they are different then it is important to act. In |
| CVV2 - CVV2, or Card Verification Value 2, is a | | | | situations like this it is likely that skimming has |
| number that is printed, not imprinted, on Visa and | | | | taken place. |
| Mastercard. This number is never transferred | | | | Finally, large orders from overseas countries with |
| during card swipes and should only be known by | | | | US Billing address are almost always fraud so it's |
| the cardholder, the person holding the card in their | | | | better to have these customers pay via western |
| hand. | | | | union or bank wire. Many times fraudsters will |
| With so many different types of credit card | | | | order a large order using a stolen credit card and |
| fraud, it is important to have a strategy to | | | | by the time you've discovered the card is stolen |
| address each one. This article offers an insight into | | | | you already shiped the order. |