Credit Card Fraud – Avoid, Detect, Report

For many businesses payments by credit cards – over the ‘phone, in person or online – are the primary source of payments.

Unfortunately with the rapid advancements in technology, frauds are becoming more sophisticated, widespread and complex.

There are many benefits of accepting payment by both credit and debit cards.  Lower labour costs – you don’t need to have people manually banking the payment;  there is less risk of theft as you are unlikely to have much cash on sight, and credit card providers keep records, which act as proof of payment, which can help to resolve disputes.

But there are still some risks in accepting credit cards – in that they can be used fraudulently.

Here are some tips to prevent being a victim of credit card fraud:

*             Do not enter the credit card details into the EFTPOS terminal manually without prior approval from the card issuer.  Thieves using stolen cards will often damage the magnetic strip to avoid the card being identified by EFTPOS as stolen.

*             Check the card signature, that number on both the front and back match and the date is valid.

*             Make sure the holograms are clearly visible, appear three dimensional and move when the card is tilted.

*             Wait until the transaction has successfully completed before handing over goods.

*             If accepting a payment over the phone do ask for the three or four digit security number

*             If accepting a payment over the phone ask for a landline number, rather than mobile, in case you need to follow up

*             Dispose of credit card slips in locked bin or shredded prior to disposal to ensure criminals can’t obtain the credit card details

*             Maintain physical security of your EFTPOS terminals and switch them off at night.

Be alert to customers who appear anxious, who arrive right on closing time, appear in a hurry, can’t show any identification or request that the transaction be entered manually.

If you suspect that the card has been altered or if you have doubts about the customer you can keep the card, ask for ID, or contact the Card Authorisation Centre to verify the information.

For further information




Check out our library of articles to help you to prevent becoming a victim of crime.

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