The dollar amounts on each individual transaction are relatively small and not enough to garner the attention of large law enforcement agencies that have the ability to catch the perpetrators. Second, it’s very easy to commit fraud. Lastly, it’s easy to convert gift card value into money or merchandise. How is gift card fraud commonly. I want to trace the crook who used my credit card details Q IN January my credit card details were used by a fraudster to pay their insurance, phone bill and hire car charges amounting to more.
Suspicious transaction monitoring should be a core component of any payment fraud detection strategy. As mobile transactions continue to increase, online fraud detection continues to become a bigger issue. By paying close attention to red flags and suspicious activity, you can avoid merchant services fraud. Listed below are the top ways merchants in the retail and online environment can monitor transactions and identify potential fraud.
Red Flags – Be Suspicious of Fraudulent Transactions If:
Online Fraud Detection
- Shipping address does not match billing address
- Purchaser attempts to circumvent your usual payment process (e.g. sending credit card information via email rather than entering it on your website)
- Order is for an unusually large amount of items
- Purchaser wants items rushed or shipped next day shipping (this is not necessarily suspicious on its own but is very suspicious along with other red flags)
- Order is from another country – particularly if you sell items that could be easily obtained in any country
- Customer tries different expiration dates after initial decline
- Customer purchases large amount of the same item
- Multiple orders come in with same shipping address but different cards
Retail environment
- Customer makes a large purchase without usual regard to details of items or price (e.g. clothing in all different sizes, styles)
- Customer makes major purchase without asking questions
- Tries to rush sale or distract cashier
- Customer makes purchase then returns later to purchase more
- Arrives right when store opens or right before closing
- Customer pulls credit card from pocket instead of wallet or purse
- Requests that card is keyed rather than swiped
- Customer is slow or deliberate with signature
- Refuses free delivery of large items
Online Fraud Detection
STEP 1: Any time you detect a fraudulent transaction, we strongly suggest that you do not run it or void it until you are comfortable. If the transaction has already been run and batched out, wait to ship the product until you have verified the transaction.
NOTE: If you are suspicious of a transaction that hasn’t been batched out yet, we suggest you void it because if you end up refunding it you will still be liable for the processing fees for the original transaction and you run the risk of a chargeback.
STEP 2: Contact our risk department. They can be reached at 800-675-6573 Option 3.
Retail Fraud Detection
Ask the cardholder for identification and if they do not provide it, do not proceed with the sale.
Online Fraud Detection
- Do a Google maps search of the shipping address to make sure it is not a UPS store or other parcel forwarding service
- If you have a phone number or email address, do a Google search of it in quotes (e.g. “773-555-9136”) which will only bring up exact results
- Identify the card-issuing bank using the first six digits of the card and call the card-issuing bank to verify the name on the card and billing address, they will be able to answer yes or no if the address and name you have are correct. You can identify the bank at binbase.com.
- If the information seems to match and only the shipping address is different, use websites such as 411.com to find an alternate phone number for the cardholder based on their name and address
- Call the cardholder to ask about the order – sometimes a credit card thief will give the actual cardholder’s phone number and other times, it will go to a disconnected number.
- Do a reverse IP address search to verify that the purchaser is in the same city and state that they are purported to be in
- Request documentation from the purchaser. Some examples are: a copy of the front and back of the card or a copy of the cardholder’s ID
Retail Fraud Detection
- Ask for identification
- Verify that signature is the same name on the card, if it looks different ask for identification
- Check the card’s security features
Embossing
First 4 digits of card number printed below embossed number, these numbers must match
Check to see if there are “ghost images” of embossed numbers that have been removed
Hologram
Check to see if hologram is intact, if card has been re-embossed hologram will be damaged
Catching every attempt at payment fraud is hard, but following these steps will help increase your chances. We hope that these steps will help protect your business. If you want more information on how Bluefin can help you, check out our payment security solutions, and if you suspect fraud, call our risk department at 800-675-6573 Option 3.
Having your personal information stolen for fraudulent purposes--identity theft--is one of the fastest growing crimes in the U.S., according to the Department of Justice. The thieves who perpetuate these crimes are also some of the most difficult to catch and arrest because they usually have no in-person contact with their victims. Simple everyday activities such as selling a used personal computer, going out for dinner, or taking out your trash can lead to an identity theft incident. For that reason, identity theft is easier to prevent than prosecute but if you have been the victim of an identity thief, here are some things you can do to help law enforcement apprehend the guilty party.
Finding and Following the Trail
![Fraudulent Fraudulent](https://img.etimg.com/thumb/height-480,width-640,msid-67071100,imgsize-272317/cofraud.jpg)
Step 1
Request a copy of the police report attached to your case. This will be used to prove to credit card companies, banks, and any other financial institutions that these purchases and or charges were not legitimate and is your best way to get the thefts removed from your account.
Step 2
Check all debits or withdrawals listed on your bank statements and all charges to your credit cards listed on your monthly bills. If any of these look suspicious, contact your bank and your credit card companies immediately. At the bank, ask to speak to the person in charge of fraud prevention; at the credit card company, ask to speak to the identity theft department. Have your statements ready when you call and be prepared to answer any questions about your spending habits.
Assuming you have already contacted law enforcement, these statements can give more detail about the crime and so you should ask both the bank and the credit card companies to pass this information to the police department where you reported the crime. Cancel your credit and debit cards and request replacements.
Step 3
Order a copy of your credit report from each of the three major credit reporting agencies (CRA) and ask that a fraud alert be attached to your file. This alerts CRA staff that your personal information has been compromised. Your credit report can be a complicated document with information going back many years so expect to spend some time going over the reports and comparing the data. Look for inconsistencies and any new incidences of identity theft. This could include application for a credit card or consumer loan in your name that you did not initiate. Each of the three major CRAs has a fraud reporting hotline which you should call immediately to report any suspicious activity. Equifax's hotline number is (800) 525-6285; Experian's is (888) 397-3742; and TransUnion's is (800) 680-7289.
Pass all of this information on to the police officer working on your case.
Step 4
Pay a visit to your local post office and ask to speak with a supervisor. Explain that you have been a victim of identity theft and ask the person to check to see that no one has filed a fraudulent change of address form for your address. Identity thieves do this in order to intercept credit card offers, then apply for a credit card in your name without your knowledge. If this has happened at your address, inform the post office supervisor and pass this new information onto police. Whatever forwarding address the thief gave could lead to an arrest.
Step 5
Most identity thieves do not limit their crimes to one victim but strike again and again. This can be terrible for victims but helpful to law enforcement. To take advantage of this, file a complaint with the Federal Trade Commission. This is quick and easy and can be done via an online form posted on their website. The information from your report is logged into a national database of identity theft incidents, the FTC's Identity Theft Data Clearinghouse, and is compared to thousands of other crimes in order to catch the thieves. While the FTC does not file criminal charges, they will pass the information on to local law enforcement.