Top 5 Tips For Spotting Credit Card Fraud

By | March 18, 2017

In the digital era, there are a lot of new and hard to recognize crimes being committed every day. The best credit card machines for businesses are the ones that give you the most security and can make it easier for your business to catch people trying to commit credit card fraud.

Getting a good credit card reader is only the first step in being able to catch people with their hands in the cookie jar when it comes to credit card fraud. You and your employees must look for the warning signs that won’t come up from conducting a basic transaction with your in house credit card machine,and make sure the names and other information match up.

Keep a log of Credit Card Numbers

Keeping track of how many times a customer tries to use a credit card can tell a lot about the potential customer. If they try more than five times, there is a high probability that it is fraud being committed under your nose. This applies for both online purchases and in store purchases.

Checking the Credit Card Number

With most point of sale systems, the monitors will display the last 4 digits of the credit card. Be sure to check the last digits on the card and make sure they match with what is being displayed on the POS system. If someone has a fake credit card the numbers will not match. Even more so, if the credit card if fake the bandit will not want someone to touch their fake credit card.

Do Research on the Address

For online purchases, find out information on your clients actual address, especially if the shipping address doesn’t match up with the billing address. A lot of credit card fraud happens when a credit card is registered in one city or state or even country and the item is being shipped else were. In cases like this, it is easy to tell whether or not you are being presented with a fraudulent card or payment method.

When in stores always ask to see someone’s ID. Be sure to check the address and make sure to check that the name matches what is printed on the card. Again matching numbers, touching the credit card are all good ways to prevent credit card fraud in your store.

Protecting your Own Credit Card & Others

If your business does online purchases be sure to require a security code via text message or email will help to weasel out scammers from the crowds. This makes it more difficult to fake accounts and also giving your customers the chance to be alerted to the fraudulent activity.

For your own credit card you can set up text message alerts when a suspicious purchase has been made. Someone committing fraud will most likely make a small purchase at a store to check and see if the fake credit card works. Then will go back and make a big purchase, knowing that the credit card works.

Profiling Software

Programs exist to cross reference information about clients and their credit card info, like shipping and billing addresses and I.P. addresses. Aside from that, they can also be cross referenced by purchase patterns, for online purchases.

For in stores, most credit card machines have a basic credit card fraud system put into place. Most machines will require debit cards to enter a pin and credit cards use the new EMV chips.

Fraud is something that can be stopped and it can help to save your business a lot of time, money and headaches. Many times credit card companies will not be held responsible for credit fraud and the fraudulent purchases fall on the business. You can check out companies like Merchant Account Solutions for more information on credit cards and debit card processing.

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