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Credit Card Fraud and Scams, Can you still be effected in 2019?

Nearly 221 billion dollars are lost each year due to credit card fraud and scams around the world. Financial institutions take steps to prevent these incidents from happening, yet, some scammers seem to slip through the cracks. Here are some tips to protect your business from credit card scams. 

Types of Scams: 

  • One thing to be on the lookout for is whether or not the customer pulls the card straight from their pocket rather than a wallet. This could be a sign that they are hiding their identity and trying to make a quick purchase and leave. 
  • A customer may buy an excessive amount of an expensive item. Scammers may try a "one trick pony" by using the fraudulent card a single time and making out with a big payday at your expense. 
  • Be aware of customers who try to make a big purchase before closing, but are also in a rush. Scammers generally try to take advantage of a situation by putting the opposite party in distress.
  • A customer may also, use a fraudulent cardThe scammer could say their card is damaged, or after multiple attempts to use their EMV chip, request to swipe their card instead. Either option should be a red flag. 
  • Lastly, a person may try to use a card skimmer to steal data. This is one of the most popular forms of fraud to date. This generally only takes place in areas that have low traffic and where an EMV scanner is not present, like a gas pump. If a skimmer is used it could not only steal profit but a customer's personal information, and even worse, the customer could blame your business. 

Prevention: In many of these cases, the proper action has been taken by other organizations to prevent these issues from happening, but there is still much to be done on the part of the merchant to keep their business safe. 

  • Train your staff: Some of these scams can be prevented with the proper training. Telling your employees what scams they might be confronted with and how they should handle it. This will give them confidence in the event that it happens, and give you piece of mind knowing that they can handle it. 
  •  PCI validated P2Pe: Point-to-Point encryption has advanced tremendously over the years. Once the interaction is made, through chip insert or card swipe, the customer's information is completely secured until it reaches the solution provider's secure location. This makes any attempts at information theft impossible if the proper software is in place. 
  • Use PCI validated Software and Businesses: PCI is a security standards organization who continues to set regulations for how data is secured. PCI has verified companies such as, Norton or Thwate, who provide a trust seal program against Malware. 
  • EMV chips: EMV chips are still fairly new to the market yet they are one of the best ways to prevent credit card fraud. They are nearly impossible to duplicate which makes them so effective. One way a scammer might try to get around the chip reader is claiming his/her chip is broken. While that is a possibility, it is always good to take the proper steps and request an I.D. to verify that the card is authentic. 
  • MFA: Multi-Factor Authentication is still something being brought to the market. Different methods are being used whether that's a bio-metric scanner or a one-time-use code along with the standard pin on glass verification. This form of security is still new though as ease-of-use has become a question, but it is showing promise for the near future. 
  • Use the resources at hand: Take the time to secure your business. Implement camera's and alert systems to protect against card skimmers or unsafe practices at the register. Apps have been created to monitor for any kind of tampering with software or systems, so utilize them. As an owner your days are busy so put up camera's to watch what you cannot.
Keeping your business secure can seem like a full-time job on top of the work you already have. While it may seem time consuming, do your due diligence and stop fraud before it happens. Some of the scams on this list can be prevented by simple training for employees so they can recognize a scam. Other scams may not be as obvious, which is why it is important to make sure your security is up to date. It's not only important to keep your business safe, but your customers as well. Taking these steps will show that you care about your customers and this helps build loyalty. Some methods may be more expensive or time consuming, but a little can go a long way so be sure to make the right decision for your business.  

Did you like this Article? Feel free to like and share on Facebook to help other businesses out as well. 

Sources: Better Business Bureau and Fundera.  

in Consumer Trends, goEBT News, Industry News