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[R235]Reporting Credit Card Fraud

by Terry Lowery, Ter

If you've ever been the victim of credit card fraud, then you know just how traumatic it can be. What's more, if not detected early enough, it could leave bad marks on your credit report that could haunt you for years. The most commonly thought of credit card fraud is when your wallet or purse is stolen, and the thief uses your credit cards to make unauthorized purchases.

But, with the rate on online buying growing at an amazing rate, another form of credit card fraud?known as misappropriation'is spreading like wildfire. All that a thief needs to create havoc on your credit life is your credit card number?not your actual card.

Here are a few ways that this type of theft can happen:

* One day you get a phone call, and the person on the other end of the line tells you that they have a special offer?usually good for only a day or so?and that you simply need to provide them with your credit card number to make a purchase. The solution? Don't ever give out your credit card number to anyone who calls you. Only provide it if you have called the company to place an order, and you are positive that it is a well-established reputable business.

* You are shocked to find that someone has gone through the bags of trash that you set outdoors for the early morning trash pick-up. A few days later when you receive your credit card statement, there are dozens of unauthorized charges. The solution? Always tear up your credit card receipts and bank statements before putting them in the trash. Many thieves go through unguarded trash bags specifically looking for these papers.

* You go out to eat in a restaurant and pay the bill with your credit card. On your next credit card statement, you notice that there are unauthorized charges that started the same day as your restaurant meal. It turns out that the waiter made an extra imprint of your card when he rung up your bill, and then used the number to go shopping. The solution? Many restaurants have placed their credit card processing centers in plain view of the customer's sight to combat this problem. If not, you could follow the waiter to the charge station, and watch him throughout the process. It's also important to make sure that they know that they are being watched.

So, what are some other measures that you can take to make sure you aren't a victim of credit card fraud? Here are a few suggestions.

* If possible, it's a good idea to carry your credit cards and other bank information somewhere other than your wallet or purse. That way, if a thief nabs it, you will be out only your cash?not your credit cards.

* It's also smart to only take with you the credit card that you intend to use that day?leave the others at home.

* Be sure to have a list in a safe place that lists all of your credit cards, the numbers and contact information of the issuing company. That way, if you are unlucky enough to lose them, you'll have the information necessary to contact them as soon as you notice the theft.

* Never sign a blank receipt, and always be sure to cross out blank lines. For example, if you bought something that didn't require a tip, cross out the tip line so nobody can add to it later.

* If you buying online make sure that you do so via a secure site.

* If you move, report your new address to your credit card issuer immediately. Some thieves look for moves, and then watch the mailbox of the old house, hoping that they can intercept a credit card statement.

By following the above suggestions, you will greatly reduce your chances of becoming a victim of credit card fraud!

The chances of your online business being exposed to credit card fraud is very high and using the following will greatly reduce credit card fraud:

Cramming Protection - Prevent the use of credit card or ACH number generating schemes by limiting the number of transactions allowed from a given IP address.

Domain Blocking - Filter transactions by the Internet domain associated with the customer's email address.

Country Blocking - Filter transactions by the Internet domain associated with the customer's country code.

Prevent Duplicate Transactions - Track recent transactions to ensure the same transaction is not authorized more than once. This eliminates problems due to "double clicking" the transaction submit button as well as duplicate submittal of batch transactions.

IP Activity Limit - Limit the number of accepted transactions from a given IP address.

Large Transaction Notification - This feature examines the transaction amount after the transaction has been accepted. When the amount exceeds an amount specified by the merchant an e-mail is sent notifying the merchant that the amount has exceeded the threshold. The merchant can then review the transaction, refuse the sale before any products are shipped, and credit back the consumer at a later time.

Address Verification (AVS) - AVS matches the known address information associated with the given credit card number against the billing address information provided by the user. If the information does not match, the transaction is declined. The merchant has the option of choosing the level of match required for an approved transaction.

CVV2 - CVV2, or Card Verification Value 2, is a number that is printed, not imprinted, on Visa and Mastercard. This number is never transferred during card swipes and should only be known by the cardholder, the person holding the card in their hand.

With so many different types of credit card fraud, it is important to have a strategy to address each one. This article offers an insight into prevention methods for well known techniques of committing credit card fraud.

Card Not Present Fraud

CNP fraud is among the fastest rising category of fraud. The main reason for this is that it is becoming much harder to commit fraud in person, especially with the introduction of Chip and Pin. As online credit card fraud increases there are some measures that all merchants can take to ensure their associated costs of being exposed to online credit card fraud can be reduced.

● Call back customers to confirm orders. Although this is also a cost center, it could be used as a technique when the transaction appears somewhat out with the ordinary

● Pay attention to transactions where the delivery address and cardholder address are different

● AVS or CSC verification doesn't remove risks 100% but it removes the ability for fraud to be done base solely on acquiring account details with out having the credit card in person.

Card Present Fraud

Card Present Fraud has become increasingly hard to commit, and as a result it is no longer associated with being a white collar crime as is often the case with CNP fraud. Despite this, card present fraud is still an issue which merchants still have to deal with. Following certain protocols can help to limit the chances of you being affected, and ensure that your business is refunded by following the correct procedures.

● Train employees to be on the look out for people who appear nervous or uncomfortable. They should not confront then based on that alone, but they should certainly be discreetly vigilant when they do.

● Check that the card number that is embossed matches the card number on the receipt. Pay particular attention to the last 4 digits if this has to be done discreetly and promptly. If they are different then it is important to act. In situations like this it is likely that skimming has taken place.

Finally, large orders from overseas countries with US Billing address are almost always fraud so it's better to have these customers pay via western union or bank wire. Many times fraudsters will order a large order using a stolen credit card and by the time you've discovered the card is stolen you already shiped the order.

Article Source : Credit Card Fraud

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Both Terry Lowery & Mike Knudtson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Terry Lowery has sinced written about articles on various topics from Cruise Ships, Food And Drink and Kitchen Home Improvement. This article provided courtesy of . Terry Lowery's top article generates over 8100 views. to your Favourites.

Mike Knudtson has sinced written about articles on various topics from Credit Card Fraud, Credit Cards and Finances. Mike Knudtson is the co-founder of the Payment Gateway Fastcharge.com and the founder of provider Electronic Transfer, Inc.. He has helped thousa. Mike Knudtson's top article generates over 4400 views. to your Favourites.