How to Stop Credit Card Fraud

Learn what steps to take to protect your businessCard Not Present Fraud
from credit card fraud !CNP fraud is among the fastest rising category of
Online credit card fraud is happening more and more.fraud. The main reason for this is that it is becoming
The chances of your online business being exposed tomuch harder to commit fraud in person, especially with
credit card fraud is very high and using the followingthe introduction of Chip and Pin. As online credit card
will greatly reduce credit card fraud:fraud increases there are some measures that all
Cramming Protection - Prevent the use of credit cardmerchants can take to ensure their associated costs
or ACH number generating schemes by limiting theof being exposed to online credit card fraud can be
number of transactions allowed from a given IPreduced.
address.Ï Call back customers to confirm orders. Although
Domain Blocking - Filter transactions by the Internetthis is also a cost center, it could be used as a
domain associated with the customer's email address.technique when the transaction appears somewhat
Country Blocking - Filter transactions by the Internetout with the ordinary
domain associated with the customer's country code.Ï Pay attention to transactions where the delivery
Prevent Duplicate Transactions - Track recentaddress and cardholder address are different
transactions to ensure the same transaction is notÏ AVS or CSC verification doesn't remove risks
authorized more than once. This eliminates problems100% but it removes the ability for fraud to be done
due to "double clicking" the transaction submit button asbase solely on acquiring account details with out having
well as duplicate submittal of batch transactions.the credit card in person.
IP Activity Limit - Limit the number of acceptedCard Present Fraud
transactions from a given IP address.Card Present Fraud has become increasingly hard to
Large Transaction Notification - This feature examinescommit, and as a result it is no longer associated with
the transaction amount after the transaction has beenbeing a white collar crime as is often the case with
accepted. When the amount exceeds an amountCNP fraud. Despite this, face to face or swiped card
specified by the merchant an e-mail is sent notifyingfraud can still be an issue which retail merchants still
the merchant that the amount has exceeded thehave to deal with. Following certain protocols can help
threshold. The merchant can then review theto limit the chances of you being affected, and ensure
transaction, refuse the sale before any products arethat your business is refunded by following the correct
shipped, and credit back the consumer at a later time.procedures.
Address Verification (AVS) - AVS matches theÏ Train employees to be on the look out for people
known address information associated with the givenwho appear nervous or uncomfortable. They should
credit card number against the billing addressnot confront then based on that alone, but they should
information provided by the user. If the informationcertainly be discreetly vigilant when they do.
does not match, the transaction is declined. TheÏ Check that the card number that is embossed
merchant has the option of choosing the level ofmatches the card number on the receipt. Pay
match required for an approved transaction.particular attention to the last 4 digits if this has to be
CVV2 - CVV2, or Card Verification Value 2, is adone discreetly and promptly. If they are different then
number that is printed, not imprinted, on Visa andit is important to act. In situations like this it is likely that
Mastercard. This number is never transferred duringskimming has taken place.
card swipes and should only be known by theFinally, large orders from overseas countries with US
cardholder, the person holding the card in their hand.Billing address are almost always fraud so it's better to
With so many different types of credit card fraud, it ishave these customers pay via western union or bank
important to have a strategy to address each one.wire. Many times fraudsters will order a large order
This article offers an insight into prevention methodsusing a stolen credit card and by the time you've
for well known techniques of committing credit carddiscovered the card is stolen you already shiped the
fraud.order.