Fraud is increasingly becoming a major problem in the United States. Although credit card issuers and credit card processing companies have made great strides to try to stop it, fraudulent behavior has become more common. Scam artists and criminals often use cell phones and other devices to make fraudulent purchases. Unfortunately, criminals often rack up thousands of dollars in charges on stolen credit cards before it is discovered. As a result of credit card fraud, retailers, credit card companies, credit card processors, and consumers have lost lots of income.
Card-Not-Present Transactions
Credit card scams are the most common fraud acts. Although fraud is possible to be committed in person, it is most often done by making a purchase online using a fraudulent card. Purchases can also be made over the phone or by mail-order. With the purchaser not being present, the retailer doesn’t see the purchaser or the card, making it easier to carry out the fraud. Retailers should take an extra step to authenticate a card when the purchaser is not present. This includes verifying and ensuring a match with the name, CVV, and billing address. Additional steps like tracking the purchase location can also help to mitigate these types of crimes.
Identifying Cybercriminals
Scammers rely on merchants to be slothful in order to get by with their schemes. It is up to everyone (the consumer, credit card issuer, retailer, and credit card processing company) to work together to stop cyber fraud. One way to do this is to set parameters to identify these scammers. Here are a few tips to help identify a fraudulent transaction:
● Paying for services over the phone in advance.
● Shipping merchandise to an address in another country or to a 3rd party delivery service.
● Placing multiple transactions in a short period of time.
● Unusual purchases and amounts
Credit Card Processing and Fraud Protection
Using Clarus as your credit card processing company, your customers will enjoy an added layer of protection against identity theft and scammers. We have further established several policies and procedures to help protect your customers against fraud. This includes our advanced technology systems that check to verify the buyer’s information and identity and flag suspicious IP addresses and credit card behavior.
