The Upper Ottawa Valley OPP is urging businesses to verify who they are dealing with before conducting remote or online sales.
Local police have recently responded to a number of calls from businesses, predominantly building supply stores, who have fallen victim to Card-Not-Present Frauds.
Police say the fraudsters contact a business to place an order for a product by way of phone, email or website, with plans to make the payment using a stolen payment card and counterfeit driver’s licences.
The business, believing it to be a legitimate purchase, requests a driver’s licence, then processes the payment on stolen payment card(s). The business provides the product(s) through a shipping company or to an individual picking up the product using a rented van or trailer (also rented with a stolen payment card).
Eventually the real cardholder identifies and disputes the unauthorized charge. As a result, the business receives a chargeback and is responsible for paying back the amount charged on the stolen card.
The OPP is sharing tips to protect your business:
- Watch for orders made using different names, addresses and card numbers but are from a single IP (Internet Protocol) address;
- 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; and
- Contact your processor and ensure security measures are established to prevent victimization and reduce unwanted chargebacks.
If your business has become a victim of the Card-Not-Present Fraud, contact your local police service and the Canadian Anti-Fraud Centre at 1-888-495-8501 (toll free) or report online at www.antifraudcentre.ca.
You can also call Crime Stoppers at 1-800-222-8477 (TIPS) or report the incident online at www.crimestoppers.ca.
