Fraud Prevention Tips

Credit card fraud continues to be a challenge for businesses and consumers. Business owners can lose their merchant account if fraud happens at their business. If there is more fraud in general, then it just adds to the economic conditions and other factors that make rates high for business owners. In the end, the Canadian consumer foots the bill in the form of higher priced goods and services.

What can my staff and I do for fraud prevention?

A. For Face-to-Face transactions, there are four key areas of focus

1. Suspicious Customer Behaviour Fraud Prevention begins with keeping your eyes and ears open.

Signs of suspicious customer behaviour can include:-Customer has randomly collected merchandise without the usual care and buying questions asked related to a purchase
-Customer makes large, random, expensive purchases
-Customer may appear nervous or in a hurry
-The customer may take the card from their pocket instead of their wallet
-The customer’s signature may not match the card

2. Card Security Features All cards are designed with special security features to deter counterfeiting and alteration. Look for the following:

On the front:

-Verify the match of print and embossing
-Embossing
-Hologram
-Valid Date
-Compare account numbers

On the back:-Signature panel
-Signature

3. Proper processing procedures

-Check the card’s security features
-Always swipe through a terminal
-For manual transactions, always get an imprint of the card
-Compare the signature with the back of the card
-Ask for supporting ID like a driver’s license w/ their photo on it
-Keep your card reader in proper working order

4. Call your provider if suspicious activity is happening

B. Mail order/ Telephone order (MOTO) and Internet Fraud There is anonymity buying through the mail, over the telephone or online, but here are the steps you can take to help stop credit card fraud.

Watch for:

-Larger than normal purchases
-Orders of “big ticket” items for possible resale
-Orders shipped Rush or Overnight for quick sale
-Transactions on similar account numbers
-Orders shipped to a single address but made from multiple cards
-Large purchases broken up and paid by multiple cards


Excited Shopping Woman