A seemingly simple scam that’s on the rise is hitting businesses, of all sizes, hard when you need it least.
Lockdown restrictions have seen many businesses change operating models and take payments in new ways, such as cafes and restaurants becoming take-aways or retailers offering deliveries for the first time.
“Scammers are taking advantage of the time it’s taking business owners to adjust to unfamiliar risks, especially if it’s not a method of selling you would normally use,” says Piotr Lepionka, Regional Fraud Manager for Elavon Europe.
“Some are paying on stolen cards, to make quick gains or to test the card with relatively low value transactions to then use it elsewhere in more lucrative fraud.”
Transactions taken over the phone (card not present) can be difficult to validate and you may end up being liable for a chargeback should the transaction turn out to be fraudulent.
To help, ask yourself some questions about orders you’re receiving, and train your staff to be vigilant when accepting phone orders, particularly from new customers.
- Be vigilant with orders. Is there something strange in what the customer is asking for? Fraudsters are looking to maximise profit from a stolen card so are less likely to care about price or availability.
- Question the contents of an order. Does the volume of items appear excessive for one person?
- With international orders, question whether the product they are ordering may be available cheaper to the customer in the country they live. Customers always look for the best price and with international shipping costs it is likely that can be found in their own country.
- Be wary of customers who request to send their own courier to collect goods.
- Be wary if a customer asks you to procure goods you do not sell.
- Never take additional funds off a card to wire money to an account at the request of the cardholder.
- If an order seems too good to be true, it usually is. Look past the potential profit and analyse the situation properly.
If you have altered your business model and need help with reducing your risk to fraud, please