AVOIDING FRAUD, on the Internet, or Retail!
The best way to prevent fraud is caution and
common sense. With careful assessment of the cardholder or
transaction, you can minimize the risks of fraudulent credit
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|WARNING: There is a new scam on
the net that can BEAT AVS!
Fraud Warning! We have been
alerted that there is a new scam we should all be aware
of, as it can fool the AVS (Address Verification
System), and allow a shipment to a fraudulent address!
It works on 3 facts: 1) The cardholder name is not
verified by the processors. 2) AVS checks only the
Numeric portion of the address (Street misspellings are
too common), and the ZIP. 3) Web site order pages
have an "Address 2" line for suite or
Here is how it works:
Assume that the VALID (Stolen) cardholder data is:
Fraudster enters the order this way:
||Irvine, CA 92301
AVS says the numeric portion of the address matches,
as does the Zip code. The delivery company will
assume the first line is just a purchase order number,
and will deliver to the address on line 2! The
fraudster could even enter a city and state in a
different zip code, knowing most delivery services will
"correct" the zip code if the delivery address
is in the specified city and state!
What can I do to protect myself? First,
be glad you know about it, and then make sure you look
at the "Address2" line of each and every
order! If it appears to be a deliverable address,
verify the customer's billing address. This can be done automatically with
our Address Verification System ("AVS"). The AVS system compares
the statement billing address on file with the credit card issuer with a
customer's billing address provided with each order. It gives added
assurance that customer is the legitimate cardholder. The shipping address
& billing address should match. More and more merchants don't accept
orders where the "ship to" address differs from the "bill
to" address. A domestic “bill to” with a foreign “ship to”
definitely is a red flag!
- Be wary of orders from free
e-mail addresses. Once a thief has a stolen credit card number and a stolen
address they need one more thing to complete their fraud portfolio - an
untraceable e-mail address to hide behind. That's why a high proportion of
fraudulent orders come from free e-mail addresses.
- Check out the customer's Web
site, where it is possible. It is often possible to determine the URL of a
customer's Web site by simply putting "www" in front of the second
part of their e-mail address. For example, if a customer provides an e-mail
address of "email@example.com" then typing www.anydomain.com
into a Web browser usually leads to their Web site.
- Things to look out for include
empty or "under construction" Web sites or sites where the contact
information differs significantly from the order information. For example,
the Web site might display a U.S. business address but the order requests
delivery to be made to Eastern Europe.
- Watch out for unusual orders.
Thieves tend to place orders that differ significantly from what legitimate
customers typically order. Things to look out for include orders for
"big ticket" items, orders for unusually high quantities and
orders where the customer is prepared to pay a lot for expedited delivery.
- Phone the customer if you have
doubt. A quick telephone call can often be enough to establish whether an
order is legitimate or not.
- Collect all possible order
data: When trying to detect fraudulent orders or trying to recover money
lost through fraud, the more data you have available the better. This
includes the customer's address and telephone number, the name of bank that
issued the credit card, and the IP address of the computer from which the
order was placed.
- Warn visitors of anti-fraud
devices and consequences of fraud. Stating clearly on a Web site that the
merchant has anti-fraud safeguards in place and will pursue prosecution for
all fraudulent orders can be enough to scare of some would-be thieves.
sure the card is signed.
taking a credit card in person, always check the cardholder's
identification. if the ID does not match the cardholder, or the
signature given is different from the one on the ID, you may be a victim of
fraud. If the ID matches the person, and the signatures are radically
different, take down the cardholder's license number. The optional
Invoice Number field in Pocket Verifier Professional is a great place to put
this, as it is saved right along with the transaction, and stored on the
secure transaction servers. (personal
note: If a customer has no ID, or tells me "You don't need an ID for a
credit card" I tell them to take a long hike...)
the signature panel on the card been altered?
the hologram on the card look altered or fake?
swiping, check that the number on the card matches the swiped display (Palm
and Pocket PC only)
the customer in a hurry or nervous?
the customer making purchases, regardless of size, quality, or price?
the customer arrive at closing time, or without ID?.
the customer want you to "KEY" the transaction?
the card have the proper UV markings?
Credit Cards and Cash, we have technology to protect
||This amazing MINI-UV
“black” light is perfect for spotting those fake
credit cards, counterfeit currency, phony drivers
licenses, or any other item that has Ultra Violet
(UV) properties. Simply push the button on the side
of the light and a bright blue UV light is emitted.
||Versatile hand-held unit allows user
to change from regular light to UV light with the flick of a switch.
Use the "black" (UV) light to check the validity of new US
$5, $10, $20, $50 & $100 bills and major credit cards.
With so many of our mobile
merchants using our products at trade shows, swap meets and trade fairs
- the PRIME location for counterfeiters to try to pass off their phony
cards, we felt it necessary to provide a line of defense.
REMEMBER- if a counterfeiter succeeds in passing a phony card on you the
first day of your event, ALL his friends will be there the next
day! Credit cards are easily manufactured and
duplicated. It is VERY easy to print, emboss, and
encode a stolen number onto a blank card. Over 8 MILLION card
numbers were recently stolen at ONE time!
Only the most
expensive and hard-to-get card duplication systems have the ability to
apply UV inks or films on a counterfeit card. Since these markings
are invisible to the naked eye, many counterfeiters are unaware it
exists at all!