If you sell online or over the phone keep your eyes open for the following fraud indicators. When more than one is true during a card-not-present transaction, fraud might be involved. Be diligent just in case.
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- First-time shopper: Criminals are always looking for new victims.
- Larger-than-normal orders: Because stolen cards or account numbers have a limited life span, crooks need to maximize the size of their purchase.
- Orders that include several of the same item: Having multiples of the same item increases a criminal’s profits.
- Orders made up of “big-ticket” items: These items have maximum resale value and therefore maximum profit potential.
- “Rush” or “overnight” shipping: Crooks want these fraudulently obtained items as soon as possible for the quickest possible resale, and aren’t concerned about extra delivery charges.
- Shipping to an international address: A significant number of fraudulent transactions are shipped to fraudulent cardholders outside of the U.S. Visa AVS can’t validate non-U.S., except in Canada and the United Kingdom.
- Transactions with similar account numbers: Particularly useful if the account numbers used have been generated using software available on the Internet (e.g., CreditMaster).
- Shipping to a single address, but transactions placed on multiple cards: Could involve an account number generated using special software, or even a batch of stolen cards.
- Multiple transactions on one card over a very short period of time: Could be an attempt to “run a card” until the account is closed.
- Multiple transactions on one card or a similar card with a single billing address, but multiple shipping addresses: Could represent organized activity, rather than one individual at work.
- In online transactions, multiple cards used from a single IP (Internet Protocol) address: More than one or two cards could definitely indicate a fraud scheme.
- Orders from Internet addresses that make use of free e-mail services: These e-mail services involve no billing relationships, and often neither an audit trail nor verification that a legitimate cardholder has opened the account.
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Other Possible Fraud Scams:
Deaf relay system: This service allows the fraudster to not have to speak a word to the business and has been targeted for fraud sales. Please use careful precautions when accepting sales.
Wires or Western Union: Scammers pay using a fraudulent credit card but ask for money to be wired or sent via western union back to them for one reason or another.
“Too Good to be True”: If the sale is a very large amount, the customer is asking for large quantities or the sale is otherwise out of the norm for your business it might be a fraudulent sale.
If you would rather talk to a real person than deal with online help centers, Contact Us! You can call us anytime with questions and we will always be available and friendly. We always provide personalized, educated service.