Credit card fraud costs consumers and retailers billions each year. It runs particularly rampant during the holidays. Credit card fraud is the intentional misuse of payment methods in order to steal money or property.
If you aren’t taking the right steps, your business can fall victim to fraud through credit and debit card transactions.
Keep reading for seven tips on preventing credit card fraud.
Crimes evolve as the technology evolves.
If a new system is being introduced across an industry, scammers are not far behind. Stay informed of the latest trends in digital crimes. Always keep your equipment software up to date.
Fraud against your business undermines customer and investor trust. If you have onsite security, make sure that they are consistently trained in the latest threats facing your industry.
Don’t Delay, Report Fraud Today
Don’t wait to report credit card fraud.
If you suspect something is amiss, you can contact the processor’s voice authorization, and verify the card. Even the most prepared organizations have become victims of credit card fraud.
The faster you respond to an incident the more chances you have of minimizing losses.
Use a Secure Network
In the digital age, a secure network is the most important principle of your security plan. Data collection from customers is at an all-time high and hackers can’t wait to get their hands on it.
Prevent this by having a secured network.
Keep all software and hardware up to date. Hackers look for vulnerabilities in popular programs to gain access to your information. Not every business can afford customized software. Be sure to follow all security measures for your applications.
A lapse in software updates allowed hackers to access the data of 143 million customers.
Working remotely is more appealing to today’s employees. Be sure that all computer’s accessing your business’s network are secure or limited in their VPN connection. Always keep anti-virus and malware programs running also, and up to date as well. Never let a thrird party you do not know first hand update your equipment. If someone comes into your business, and tells you they need to update your POS equipment, just say no thanks, and call your provider.
Keep Your Eyes Open
Keep your eyes open.
Fraud can happen online or in stores. Point-of-sale customers that are trying to commit fraud may act suspiciously. Be mindful of any problems with swiping or inserting they claim that a card has. Check for identification and use your common sense. Never be afraid to ask for a picture form of I.D. if you’re uncomfortable with the transaction.
For online card transactions, limit the number of times a customer can enter a credit or debit card number.
Multiple failed attempts are a red flag. Also, check to make sure the shipping and billing address match if the package is going overseas. This is not always a sign of fraud but is a common practice used by scammers.
Don’t share any information over the phone. Phone phishing is still a very popular way scammers access personal information. It’s likely they’ll use a company name you know, or deal with, and tell you they need to rerun a transaction that didn’t go through. Hang up! Call a number to the company you know is legitimate, and inquire about your account.
Create a Prevention Framework
Create an environment of safety at work. Do not allow everyone exclusive access to customer information. Restrict access to certain individuals and locations that need access to the data, to minimize loss of data.
Make sure all employees are properly trained in fraud prevention. Keep up to date on the latest security measures. Through your PCI Compliancy company, or your merchant services provider, you can attain education materials, and employees documents acknowledging they’ve been trained and understand the procedures.
If everyone follows along with security measures, the chances of a breach are vastly decreased.
Setup automatic security feature for your website. For instance, you can program your website to decline orders to places you don’t ship to.
An Address Verification Service (AVS) is another means to thwart fraudsters. It checks that the entered billing address matches the billing address on file with the card issuer. Using AVS also helps keep your raters lower, and avoid additional transaction cost by the Card Brands.
Practice Safe Purchasing
A common misconception is that fraud only involves the misuse of a card that belongs to someone else. Customers can also commit fraud by making a purchase and claiming they did not. This way they receive a free product.
Protect your business from this by requiring a signature at delivery.
Businesses can also fall victim to payment crimes. Scammers will send fraudulent invoices and bills to be paid. If you are not careful you run the risk of exposing your company’s sensitive data.
Be sure that all transactions you perform have a verification process and a paper trail. Be wary of strange emails from people claiming to be business partners or employers.
A secure chain of access to certain company info will help track where and when a loss occurred. This will also help you assess the damage and what measures you need to take.
PCI Security Standards
The Payment Card Industry Security Standards are measures to create a consistent framework of security. The PCI trains and certifies companies on best practices for data security compliance.
The standards cover how to securely accept and transmit customer payment data. They also issue continuing education on the changing technologies. Many credit card companies and banks follow the PCI standards.
Non-compliance can land you some hefty penalties. Penalties are not carried out by the council, but their associated payment brands. Penalties can vary from $19.95 a month for non-compliance and up to tens of thousands even if there is no breach of your system, by the card brands. A breach when non-compliant can bankrupt a business.
Preventing Credit Card Fraud
Preventing credit card fraud is an ongoing organizational effort.
Today, more consumer data is collected to improve the shopping experience. This also means more data is available for scammers and hackers to access.
Make sure you stay compliant with the PCI standards. This will greatly reduce your chances of becoming a victim. Practice safe purchasing habits within your business. Any information that leaks can potentially be an open door to hackers.
Keep software and hardware up to date. Equifax learned the hard way, that software updates are crucial business health.
The POS is not the only place to catch a potential threat. Online transactions offer thieves a cloak of anonymity. Institute automated security features that check addresses and prevent multiple card attempts. Card brands also offer additional security for online transactions, however at an additional cost.
Finally, a framework of security ensures that you are taking every step to protect your customer’s privacy.
Secure your business by checking out the latest in merchant technology.