Card Not Present Fraud
In these days of Internet and telephone shopping, we often buy goods on our credit cards without the merchant being able to see the card. That makes it a market open for fraud - in fact over £150 million in 2004
How It Works
You make a purchase by credit card in a shop, and perhaps you don't take your receipt, or just discard it in a bin, either on the street or at home. It's found by a "bin diver" and used for purchases online or over the phone. The first you know about it is when you receive your monthly statement.The main areas for 'card-not-present' crooks are high-value goods - expensive televisions, computers, etc. - that can be easily purchased and sold on by crooks.
They're helped by the fact that, according to statistics, one in three people don't shred their receipts when they have finished with them, while one in five people allow others to use their credit cards to make purchases.
How To Avoid The Fraud
- Don't let anyone else use your credit card.
- Always take your receipt.
- Keep your receipts, and tear them up, or preferably shred them, before disposing of them.
- Only shop from well-known web sites which display a secure padlock logo, and have both a landline phone number and a real address (not a P.O. Box).
- Don't give out your PIN numbers.
- Keep your credit cards and cheque book safe.
What To Do If You're A Victim
For Businesses
Obviously, businesses are affected by this fraud too. The best ways they can protect themselves are:- Implement a AVS/CVC checking system.
- Use an address verification service.
- Register Verified by Visa and MasterCard Secure Code.
- Avoid orders overseas where possible.
- Use the APACS CNP Guide.
- Where possible, validate telephone numbers through Directory Enquiries and call the customer back to confirm the order.
- Exercise caution with people only willing to provide mobile telephone numbers for contact.
- Consider implementing a transaction "ceiling limit".
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