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