Top 10 Credit Card Fraud Techniques

Merchant accounts carry a certain amount of risk and one of the most prominent risk lies in the potential for fraud. Fortunately, the best way to combat fraud is to know what to look out for. When you know what you are protecting yourself against, you can ensure that you have the best chance of watching for the top 10 credit card fraud techniques.

1. Using Temporary E-mail Accounts

An e-mail account can contain a lot of information, so one way fraudulent purchasers avoid consequences is to utilize a temporary e-mail account. If you notice this is the case, flag the transaction and contact the buyer.

2. Providing Fake Phone Numbers

Like a temporary e-mail account, fake phone numbers are among the top 10 credit card fraud techniques to look for. If in doubt, call the number provided for verification.

3. Use of a Forwarding Address

If the shipping address provided is a forwarding address, you should flag the transaction and take the opportunity to contact the buyer to verify his or her identity.

4. Card from Different Country

Sometimes, fraud can be perpetrated by using a credit card from another country. If you find that the billing address and the IP address of the purchase are from different countries, use your judgment and investigate the purchase further.

5. Stealing a Card Number

This is why it is important to always ask for a security code. If you fail to do so, someone could enter a credit card number without owning it and perpetrate fraud against the owner.

6. Duplicate Orders

Any time someone place two, identical orders at the same time, you need to investigate it further. This is one of the top 10 credit card fraud techniques to watch for and delaying the order can help you avoid the consequences.

7. Next Day Delivery

If a client orders a high dollar item, especially one that normally would not require next day delivery, you should consider the possibility that it is fraud. The best way to avoid this is to contact the card holder and ensure that the information is all accurate.

8. Using a Proxy Server

A proxy server can help mask a variety of false information. If you notice detect that a proxy server was used, you should definitely call the card holder and ensure that the purchase comes from the real owner.

9. Redirecting Information

As in number 4, one way to catch fraud is noticing that the card address is different than the IP address used for the purchase. To outsmart fraud prevention, people can sometimes try to redirect an IP address to give false information. If you find that an IP has been redirected, make sure to identify the country of origin and compare it to the billing address.

10. Identity Theft

Identity theft has become entirely too prominent in today’s society. Out of all of the top 10 credit card fraud techniques, this one is the most difficult to avoid. The best measure you can take is to install fraud prevention software of your own and utilize a negative database to look for any potential abnormalities.

If you have questions about merchant account fraud to work out for, please contact a representative at Transparent today to find out what you can do to better protect yourself.