How to Stop Credit Card Fraud

If you are a merchant, particularly someone who sellsout with the ordinary
products online, the chances of your business being● Pay attention to transactions where the
exposed to credit card fraud is highly likely. For manydelivery address and cardholder address are different
businesses, credit card fraud is a cost that they● AVS or CSC verification doesn't remove
apportion into doing business and they may evenrisks 100% but it removes the ability for fraud to be
account for it in how the price products - similar todone base solely on acquiring account details with out
how a business may account for bad or doubtfulhaving the credit card in person.
debts. In the UK for example, government publishedCard Present Fraud
statistics reveal that credit card fraud has went upCard Present Fraud has become increasingly hard to
from £83.3m 10 years ago to £504.8m justcommit, and as a result it is no longer associated with
before the introduction of the chip and pin scheme.being a white collar crime as is often the case with
Chip and pin is a system where by a number isCNP fraud. Despite this, face to face or swiped card
assigned to each credit card, meaning a thief has tofraud can still be an issue which retail merchants still
do more than just fake a signature to complete ahave to deal with. Following certain protocols can help
purchase with someone else's credit card. This hasto limit the chances of you being affected, and ensure
been said to have reduced fraud by 13% since itsthat your business is refunded by following the correct
introduction.procedures.
With so many different types of credit card fraud, it is● Train employees to be on the look out for
important to have a strategy to address each one.people who appear nervous or uncomfortable. They
This article offers an insight into prevention methodsshould not confront then based on that alone, but they
for well known techniques of committing credit cardshould certainly be discreetly vigilant when they do.
fraud.● Check that the card number that is
Card Not Present Fraudembossed matches the card number on the receipt.
CNP fraud is among the fastest rising category ofPay particular attention to the last 4 digits if this has to
fraud. The main reason for this is that it is becomingbe done discreetly and promptly. If they are different
much harder to commit fraud in person, especially withthen it is important to act. In situations like this it is likely
the introduction of Chip and Pin. As online credit cardthat skimming has taken place.
fraud increases there are some measures that allFinally, large orders from overseas countries with US
merchants can take to ensure their associated costsBilling address are almost always fraud so it's better to
of being exposed to online credit card fraud can behave these customers pay via western union or bank
reduced.wire. Many times fraudsters will order a large order
● Call back customers to confirm orders.using a stolen credit card and by the time you've
Although this is also a cost center, it could be used asdiscovered the card is stolen you already shipped the
a technique when the transaction appears somewhatorder.