Fraud Tip of the Day - July 8

How Businesses can Minimize the Risk of Credit Card Fraud

Businesses can avoid the losses caused by credit card fraud and identity theft when they use our risk minimizing tips.

• Double check that customers have provided all the necessary information, including their full address and phone number. Refuse orders for customers who fail to provide this data.
  
  
• If the transaction occurs in person, train your sales staff to compare the information on the card to the receipt and a piece of photo ID, such as a state driver's license.
  
  
• Credit card companies are always trying to improve security for their cards. Be sure your sales staff is able to recognize all the various details for the different types of credit cards your business takes.
  
  
• It's important to verify the billing address for all orders paid with a credit card. If a customer uses a shipping address other than his or her billing address, have them verify the purchase by sending a fax with their signature and credit card number approving the sale.
  
  
• Due to the increased incidences of credit card fraud coming from email accounts created using free email services, most businesses not longer accept credit card orders from them. Consider applying this policy to your own business.
  
  
• Prior to processing an order, consider requesting additional data from the buyer: an email address (other than from a free service), information on the bank that issued the card and the name and billing address for the card. These can be obtained by using a form in your online business's shopping cart or over the phone if the order is initiated by calling in to your business.
  
  
• Unusually large orders with next day delivery should set off warning bells for your order processing team.
  
  
• Pay special attention to international orders. Every one should be validated prior to shipment.
  
  
• If you feel a red flag warning about an order, call the customer to confirm. It's better in the long run to take a few minutes up front to verify. Additionally, legitimate customers will welcome your attention to security details.
• Think about using software or services specifically designed to fight online credit card fraud.
• Contact your local bank and law enforcement department immediately if you suspect being a victim of credit card fraud.

More Credit Card Fraud Information