Small businesses are always happy to help satisfy a customer; whether it’s helping them pick out a new pair of shoes, selling them the perfect piece for their collection, or simply offering a relevant online shopping experience, small businesses welcome the chance to create a connection.
For many small business owners, these interactions occur online or via mobile app, where the primary mode of payment is by credit card. While most owners can trust that the payments they receive will process just fine, it’s a good idea to keep an eye out for fraudsters.
Despite the shift to chip-enabled credit cards three years ago, scammers are still finding ways to steal shoppers’ information and using it to make a multitude of online purchases. When stolen credit card information is used to make a purchase, it results in both a product and financial loss for the business.
The bank the stolen credit card is affiliated with will contact the business for reimbursement on behalf of the cardholder, and they’ll place additional fines on top.
Fortunately, there are signs a small business owner can look for in order to determine whether or not a transaction is fraudulent. Scammers may appear as first-time buyers that place orders that look like the ones below:
– An unusually large order and/or orders placed through the Internet without any contact from the customer.
– A rush order for large quantities of high-priced items, often with overnight shipping.
– A rush order or an overnight shipping request sent to a different address, especially one overseas.
– Multiple transactions paid for with different cards with similar account numbers.
– Transactions made with multiple cards, all shipping to the same address.
– Multiple transactions on one card over a very short period.
– Transactions on a single card with one billing address, but multiple shipping addresses.
– Multiple cards used from a single IP address.
– Orders from Internet addresses that make use of free email services.
– Customers who request inventory lists with promises of placing a large order.
– Orders with missing information, and/or customers who refuse to provide contact information.
Some of the best ways to protect your business from costly credit card fraud? First, try to verify that the person making the purchase is actually the cardholder.
If you’re still not sure – don’t ship.
Contact your credit card merchant; they can help you understand and implement some best practices that keep both your business and your customer safe.
For more information on what you should do if an order seems suspicious, visit bbb.org.
Sandra Guile is the Community Outreach Specialist for BBB. She promotes BBB’s message of marketplace ethics through public speaking engagements, presentations, media relations, press releases, web content, and other written materials. Your BBB is located at 1 East 4th Street Suite 600 Cincinnati, Ohio 45202 – to reach the office, call (513) 421-3015.
