A business in Pembroke is out $10,000 from a card-not-present fraud. The Upper Ottawa Valley OPP is reminding businesses to be careful when doing sales over the phone or online. The OPP says detachments across eastern Ontario have responded to numerous calls from businesses including automotive and recreational vehicle dealerships who have fallen victim the these types of scams.
Police say one incident reported last month saw a business in Pembroke lose $10,000.
The OPP says fraudsters will contact a business with plans to pay using a stolen card and counterfeit drivers license. The product will be sent to an individual picking up the product using a rented van or trailer, also rented with a stolen card. Once the real cardholder is identified, the individual will dispute the charges and the business will receive a chargeback that they have to pay.
Some tips from the OPP to protect your business include:
- Prior to shipping merchandise, take steps to verify the information provided by the customer (telephone number, email address, shipping address, etc).
- Be sensitive to priority shipments for fraud-prone merchandise, which may indicate a fraudulent transaction.
- Be aware of orders that occur with a request for urgent shipment, especially if the shipping address does not match the billing address on the credit card provided.
- Be aware of orders from repeat customers that differ from regular shipping patterns.
- Contact your processor and ensure security measures are established to prevent and reduce unwanted chargebacks.
If your business has become a victim of Card-Not-Present Fraud, contact your local police service and the Canadian Anti-Fraud Centre or toll free at 1-888-495-8501.
(written by: Rudy Kadlec)