(Further information on a story reported in today’s newscast)
The Northumberland Detachment of the Ontario Provincial Police (OPP) want to remind small business owners regarding the Card-Not-Present (CNP) fraud that continues to target Canadian businesses.
Two businesses within Northumberland County have already reported being victimized this year.
The CNP fraud is when a scammer places an order for products or services by phone, email, fax or through the businesses website. The scammer intends to make payment using a stolen credit card(s). The merchant believes this transaction to be a legitimate purchase and delivers what was ordered.
Eventually the real cardholder identifies and disputes the unauthorized charge. This results in the merchant receiving a chargeback and is then responsible for paying back the amount charged on the stolen credit card. It is important to remember that any merchant who accepts CNP orders can potentially become a victim.
Warning Signs of CNP
Product / Order Flags
Larger than normal orders
Multiple orders for the same product; especially “big ticket” items
Orders from repeat customers that differ from their regular spending patterns
Delivery Flags
Customer requests “rush” or “overnight” delivery
Single card used with multiple shipping addresses
Billing address different than shipping address
Request that extra funds be sent to a 3rd party shipping company Customer Flags
Orders made using different names, addresses, and card numbers but are from a single IP address
Internet addresses at a free email service
Multiple cards used for one order (cards keep getting declined)
Purchaser name and cardholder name are different
How to Protect Yourself
Know the Red Flags and compare to the transaction(s) received.
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.
Contact your processor and ensure security measures are established to prevent victimization and reduce unwanted chargebacks.
