The Ontario Provincial Police (OPP) urges businesses to verify who you're dealing with before conducting remote or online sales.
The OPP in eastern Ontario has responded to numerous calls from businesses, including automotive and recreational vehicle dealerships, who fell victim to Card-Not-Present (CNP) Frauds.
The fraudsters contact a business to place an order for a product by way of phone, email or website, with plans to make the payment using a stolen payment card and counterfeit driver's licences.
The business, believing it to be a legitimate purchase, requests a driver's licence, then processes the payment on stolen payment card(s). The business provides the product(s) through a shipping company or to an individual picking up the product using a rented van or trailer (also rented with a stolen payment card).
Eventually the real cardholder identifies and disputes the unauthorized charge. As a result, the business receives a charge back and is responsible for paying back the amount charged on the stolen card.
Tips to protect your business:
• Watch for orders made using different names, addresses and card numbers but are from a single IP (Internet Protocol) address;
• Prior to shipping merchandise, take steps to verify the information provided by the customer (telephone number, email address, shipping address etc.);
• Be sensitive to priority shipments for fraud‐prone merchandise, which may indicate a fraudulent transaction;
• Be aware of orders that occur with a request for urgent shipment, especially if the shipping address does not match the billing address on the credit card provided;
• Be aware of orders from repeat customers that differ from regular spending patterns; and
• Contact your processor and ensure security measures are established to prevent victimization and reduce unwanted chargebacks.
Businesses who accept CNP orders can better avoid fraud by using the automated verification tools supported by their acquirer and the payment associations.
If your business has become a victim of the Card-Not-Present Fraud, contact your local police service and the Canadian Anti-Fraud Centre at 1-888-495-8501 (toll free) or report online at www.antifraudcentre.ca. You can also call Crime Stoppers at 1-800-222-8477 (TIPS) or report the incident online at www.crimestoppers.ca.