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28th January 2021

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Leader 14th October continued

Continued from Front Page

"Card fraudsters are like a virus in that they change and adapt to the conditions they face and it is important to be vigilant in order to minimise the risks of being hit," he says. "There is much to do to stop people who are determined to take money from your business by using someone else's card.

"These criminals are much less likely to target businesses in person via a chip and pin transaction, and the majority of fraud is seen where the cardholder is not present, in other words mail order and online payments. The best advice is to be prepared."

For mail order transactions Mr Bradley advises business owners to apply Address Verification Service and Cardholder Verification Value 2 checks on their terminals. He says that all the information requested should be entered in full and verified, warning that any missing data could lead to banks charging more for transactions and reduce the level of security for businesses.

He also advises that those taking payment should ask themselves several key questions to assess if mail order fraud is taking place:

* Is the sale too easy? Is the customer disinterested in the price or details of the goods? Are they a new customer? 

* Are the goods high-value or easily resalable? 

* Is the sale excessively high in comparison with your usual orders? 

* Is the customer ordering many different items? 

* Do they seem unlike your usual customer? 

* Is the customer providing details of someone else's card, e.g. that of a client or family member? 

* Is the customer reluctant to give a landline phone number? Are they only prepared to give you a mobile number? 

He also advises internet retailers to minimise the risk of being hit by fraud by:

* Ensuring their online 'shopping cart' or checkout is secure and meets the requirements of Payment Card Industry Data Security Standards. 

* Ensuring they or their payment software suppliers have up-to-date anti-virus and anti-phishing software installed on all computer systems. 

* Adopting fraud prevention tools such as Verified by Visa and MasterCard SecureCode on their payment gateway, which prompt customers for their passwords. 

All of these measures will help business owners judge whether a cardholder is genuine but it is important to remember that authorisation of a card in not a guarantee of payment whenever the cardholder is not present.

If in any doubt whatsoever it is important not to proceed with the transaction or deliver the goods at all. After all, they are your goods and it is your money - and business - that is potentially at risk...

14th October 2011