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SMALL BUSINESS 101: Preventing credit card fraud
With the Christmas retail season just around the corner, will you and your employees be ready to spot credit card fraud within your business? Types of credit card fraud can include: • Counterfeit or duplication of legitimate cards used for fraudulent activities. • Card Not Present: unauthorized usage of credit card information for fraudulent activities over the internet, phone or mail. CFIB would like to offer members the following tips to help safeguard your business against credit card fraud: • Do not provide account data to someone over the phone - unless you are the one who initiated the call. • Protect yourself and your customers against identity theft - collect only essential data. • Protect systems and data from viruses, and update security software frequently. • Always ask for identification and compare the signature. The signature on the receipt should match the signature on the back of the credit card. • Always check the card for key security features and learn to recognize a credit card's built-in security features. All credit and debit cards have distinctive characteristics that help protect consumers and merchants from forgeries such as: embossing, and the repetition of the first four numbers printed on the card. • Be on the lookout for purchases where multiple cards are used from a single IP (Internet Protocol) address, or those where orders are charged to multiple cards but are shipped to the same address - these could signal fraudulent activity. • When taking orders over the phone, or over the Internet, ask the customer for the card expiration date, and include it in your authorization request. An invalid or missing expiration date can be an indicator that the person on the other end does not have the actual card. Also, remember to ask for the three-digit number on the back of the credit card. • Be alert for transactions with several of the following characteristics: larger than normal orders, orders consisting of several of the same item, orders made up of 'big-ticket' items, large purchases right at the opening or at the last minute when the store is closing, orders shipped 'rush' or 'overnight', and orders shipped to an international address. • If you are ever suspicious about a card, call your authorization centre and ask for a "Code 10" authorization (or "call for assistance"). An operator will tell you what to do. However, never do so at the risk of your own personal safety. • Know your employees. Check references or conduct background checks on all your employees. Remember, you are the first line of defence against potential losses. By staying informed and training your employees, you can greatly reduce the risk of fraud and save your business money. -- -- -- -- The Canadian Federation of Independent Business is a non-partisan political action organization representing the interests of small- and medium-sized, Canadian-owned enterprises since 1971. Visit CFIB online (see link). Opinions are those of the author. WEB: CFIB |
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