Fraudsters continue to target a wide range of sectors – High Risk sectors include technology and telecommunications, computer and electrical goods, fashion items, clothes, jewellery and accessories, motor parts & tyres, financial, charities as well as sectors that offer other highly desirable items that can easily be re-sold.
2. Use CV2 (3 digit security number on signature strip) and AVS (postcode & house number) or a third-party address-checking system (e.g., Equifax, 192.com) to ensure the customer’s address is verified. Avoid shipping to an address different from the billing address associated to the consumer’s card at all times
3. Make full use of other fraud prevention tools covering ID Verification / Bank account details and account holder check / card check and proof of ownership
4. Require that the customer send you a signed fax, preferably with a photocopy of the front and back of the card, so that you can check the signature. For website sales, this should allow the user to automatically print the order form, so it only needs to be printed out and sent.
5. Arrange for customer to set up an account first and either check with the issuing bank of the credit card that the provided address is correct, or have the customer fax a copy of their latest credit card statement and/or passport/driving licence.
6. Verify the use of the credit card to the customer’s actual postal address by other means than email, such as a letter, phone call, fax, or SMS message, to reduce the level of fraud risk.
• Purchases made in the middle of the night
• Sudden significant orders from existing customers
All in all a commonsense approach is needed and if in doubt, DO NOT TAKE PAYMENT BY CARD, and request a bank to bank transfer – after all it is your money at stake!
Mark Pearson from Accept Cards gives from practical tips on how to avoid fraud when taking card payments.