| Internet Fraud is on the rise with scammers not only | | | | often other businesses will have been targeted too |
| sending out proliferations of scam emails for lottery | | | | and they will sometimes publicly report the scam artist |
| scams, the 419 or ‘Nigerian’ scams, multi media | | | | online and their details. |
| piracy, investment and securities scams, chain letters | | | | If you are still unsure as to whether you are dealing |
| and pyramid scheme scams, and unlawfully selling | | | | with a fraudulent email scam then proceed by sending |
| prescriptions online there is a rising trend in general | | | | a polite email asking for more details, specifically the |
| internet fraud for the online trader. | | | | products the customer is interested in, their address |
| If you are the owner of an E-Commerce website you | | | | and contact details for delivery. You will then be able |
| must be particularly vigilant these days in the arena of | | | | to quickly ascertain from the email responses whether |
| the world wide web to protect your business from | | | | the order is genuine. In most cases the sender will give |
| online fraud. As an online trader myself I have | | | | a vague response or typically order several of the |
| witnessed first hand the regular and increasing | | | | same item (usually a high ticket priced item) and select |
| attempts to defraud our jewellery business through | | | | an expensive freight method. |
| online ordering. Many of these fraudsters are identified | | | | As the holder of a merchant account you are liable for |
| before they can actually place an order through our | | | | accepting payments made with stolen or falsified |
| website’s ecommerce systems, occasionally an | | | | credit cards. Suspicious orders will generally exhibit |
| order slips through and gets approved by our online | | | | some of the identifying factors listed above, multiple |
| ordering systems so in this case how do you identify | | | | products of the same type ordered and expensive |
| that it’s a suspicious transaction? | | | | methods of freight selected. However be wary as |
| The key identifying tags of ‘online fraud’… | | | | these types of scam artists are becoming more |
| Typically a conman will first send you a ‘feeler’ | | | | sophisticated in their approaches and a fraudulent |
| email with a simple subject matter saying they are | | | | order that has made it through your online ordering |
| interested in purchasing your products and ask if you | | | | systems and has been approved may only be |
| accept certain types of credit cards and whether you | | | | identifiable by the method of freight they have |
| ship internationally. There will usually be no mention of a | | | | selected as ‘Express Courier International |
| specific product that they are interested in. They will | | | | Freight’. |
| also nominate a country where they want the order | | | | The fraudster may test with a small order first to see |
| delivered to. If they mention Lagos, Nigeria or South | | | | if the credit card payment has been approved and if |
| Africa then delete the email immediately and block the | | | | you have not detected the order as fraudulent, they |
| sender and take no further action. The majority of | | | | will then send through another order within a short time |
| these types of scams will originate from Nigeria using | | | | frame usually within a week so they can get the most |
| stolen credit cards. However don’t be fooled by | | | | benefit out of the stolen credit card before it is |
| the legitimacy of a country’s location we have | | | | detected or reported stolen by the owner. |
| received these types of scam emails from the UK, | | | | I have also encountered cases where the fraudster |
| Ireland, USA and parts of Asia. | | | | has set up an email account in the name of a |
| If you are unsure as to whether the email is a scam | | | | legitimate customer (identity theft) with contactable |
| you can check the IP Address of the sender in the | | | | phone numbers and address details and then adjusted |
| email header for a match in the Internet Registries to | | | | the delivery address details via email contact using a |
| verify which country the email is originating from. To | | | | valid email address prior to the order being sent out. |
| access an email header and locate the IP Address of | | | | Prevention measures to counteract online fraud… |
| a sender, right mouse click on the title of the spam | | | | So what can you do if you receive a ‘suspicious |
| email in your inbox and select ‘options’. The | | | | order’ that has successfully been processed |
| authentic IP Address is usually the one listed at the | | | | through your website including credit card approval:- |
| bottom of the email header, in most cases all of the | | | | • Firstly check with your bank to see if the credit |
| information provided at the top of the email header is | | | | card has been reported missing or stolen. |
| false and is used to conceal the real identity of the | | | | • If you still believe the transaction to be fraudulent |
| sender. When you have located the IP Address enter | | | | then have the transaction reversed and the money |
| it into the following Registries of Assigned Internet | | | | credited back to the credit card involved. You have |
| addresses to search for a match:- | | | | the right to refuse any payments that you feel are |
| APNIC (Asia Pacific network) | | | | suspicious. |
| RIPE (European) | | | | • Inform the customer that you suspect the |
| ARIN (American Registry) | | | | transaction is fraudulent and refuse to accept the |
| LACNIC (South America & Caribbean) | | | | order. You can request that if they are still interested in |
| If there is a discrepancy between the location of the | | | | the purchasing the goods that they pay by an |
| Internet Service Provider and the customer’s | | | | alternative method such as money order, bank |
| stated country of origin in their email you can be pretty | | | | transfer or Paypal. |
| certain it is an email scam. | | | | • Do not send any goods out to the customer. If |
| Another indication that you are being contacted by an | | | | you have sent goods out and they have not yet |
| email fraudster is that they will order several of the | | | | reached the customer then have the delivery stopped |
| same product and colour and have little regard for the | | | | and the parcel returned to you. At least this way you |
| cost of freight. They will often select the most | | | | will recover some of the costs of the order to your |
| expensive International Courier methods of freight | | | | business. |
| delivery. | | | | • Disable any customer accounts or member logins |
| If the email sender is presenting themselves as an | | | | in your website database have been identified as |
| established business with a website address then you | | | | fraudulent. |
| can check their website URL for legitimate contact | | | | Make sure that you educate your staff involved in |
| details. If it is a scam often the website will be | | | | processing orders as to the telltale or possible signs of |
| ‘under construction’ or have a page holder in | | | | a fraudulent online order and be vigilant in detecting |
| place. You can check this business out further by | | | | online fraud in emails and approved online orders. |
| typing their business name into the Google search | | | | Credit card fraud can become a costly expense for |
| engine and see what results turn up. If this is a scam | | | | your internet based business so be wary. |