Home > Credit Card Scams > Card Not Present Fraud

Card Not Present Fraud

By: Chris Nickson - Updated: 22 Oct 2013 | comments*Discuss
 
Card Not Present Cnp Fraud Internet

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

  • Inform your credit card company immediately once you discover the fraud. You're only liable for the first £50, but in practice many companies won't make you pay that.
  • Remember that your card will be cancelled, and a new one issued, so remember not to use the old card.
  • Contact the credit reference agencies and request a copy of your credit file (it costs £2) to ensure no one has used your information to apply for credit in your name. Challenge any inconsistencies, and have a fraud alert placed on your file.
  • Contact CIFAS (0870 010 2091) to ensure that any further transactions in your name are double-checked.

    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".

    You might also like...
    Share Your Story, Join the Discussion or Seek Advice..
    Why not be the first to leave a comment for discussion, ask for advice or share your story...

    If you'd like to ask a question one of our experts (workload permitting) or a helpful reader hopefully can help you... We also love comments and interesting stories

    Title:
    (never shown)
    Firstname:
    (never shown)
    Surname:
    (never shown)
    Email:
    (never shown)
    Nickname:
    (shown)
    Comment:
    Validate:
    Enter word:
  • Latest Comments
    • Jinty
      Re: Builder's Scams
      Guy called james from kilmarnock. Said he worked with jm roofing and stone specialist. Dont give him work. Poorly fitted gutters and ignoring all…
      9 June 2022
    • Samh1979
      Re: Builder's Scams
      Don’t fall foul of Arren Safavi from Lancashire decking. He looks and acts all professional however once the deposit is paid that’s him doing a…
      22 April 2022
    • Dia
      Re: Sky TV Scam
      I just received a call from someone saying from Sky not sure if it was genuine. Asked me for my address. Then my bank details, then my password for my…
      2 April 2022
    • Pepper
      Re: Scams And Seniors
      Scammed out of £12500 by a builder who has been to court several times. I paid by my debit card, have I any chance of getting compensation. I am…
      9 September 2021
    • snobbs
      Re: Builder's Scams
      We have been scammed by James Hookey & Libby Hookey... advertised for a roofer on fb, Libby contacted me to say James can help... he came quoted,…
      6 July 2021
    • Villager
      Re: Sky TV Scam
      I received a call from ‘Sky’ this week saying I had overpaid and was due a refund. This seemed fairly plausible as the day before I had telephoned Sky…
      10 June 2021
    • Sam
      Re: Builder's Scams
      Don't use Martin Jacques from swift cavity clear or swift building services based in Manchester.He did a awful job of my garden and charged thousands.
      1 June 2021
    • John
      Re: Bank Identification or BIN numbers Scam
      Okay I just don’t want to euryeurueiieoeoe you talking about to sleep or sleep no sleep sleep no cap on sleep and…
      6 May 2021
    • Scallywaggle
      Re: Builder's Scams
      I have been scammed by a man called James hookey, and his wife Libby hookey, from face book, asking for recommendation, for patio, The wife sends a…
      5 April 2021
    • don’t know
      Re: Vishing Scam
      Had a text message this morning form a mobile number saying that I’ve missed a delivery and that I needed to pay 1.50 to R.M. Lucky enough my iPhone…
      17 March 2021