Theme HQ - SEO, The Internet & Computers

I have to post this as it is something that is driving me mad at the moment. The total lack of care and bother about the huge issue of online credit card fraud going on at the moment.

Firstly I run a couple of online businesses. These are sites that people can buy goods from us using a credit or debit card online via the site.

We all hear how credit card fraud is growing in the UK and US - This is where people either steal your card or clone your card to buy goods and services fraudulently.

Since the introduction of the chip and pin system the fraud in shops and restaurants has been greatly reduced - but us online retailers do not have these facilities to hand. And all the faraudsters who used to target our high street stores now come online as it’s easy pickings.

Just to give you an idea - some chump ordered about £4000 worth of goods on my site yesterday alone - It is down to me and our company to spot this is suspected fraud and prevent the goods from going out - if we do not we will be liable for the full amount.

So how do we protect against credit card fraud? Well we have a couple of tools. One is the AVS checks which check the address details of the card holder. This matches the numbers in the postcode and the number of the house - also the last three numbers printed on the back of the signature strip.

Ok so someone who has nicked your card has the last three numbers on the back of your card so not exactly helpful - chances are the person who nicked your card could find your address from the rest of your belogings they stole and simply loiter outside your house to collect the goods.

So we online retailers have to be so careful. but what pisses me off more than anything is the lack of support from any of the authorites.

Unless a crime has been committed - as in you send your goods out to the fraudster - the police are not interested. I have tipped them off today about this £4000 guy - I have told them the address they will be waiting at and their IP address of the transaction. being this is £4000 over a couple of addresses this could be a ring of credit card fraudsters - you would think they would have bothered to call back? Nope - no word. Why would they care?

The card owners - if fraud is reported ont heir card, the card company will amost certianly refund them immediately whilst they investigate. I was a victim of this a while back and my bank immediately reveresed the charges. Whilst the card owners are told to be vigilent - the chances are if their card is used they will get the money back straight away.

The banks - they don’t really mind - they give the customer their money and get onto the credit card company requesting a charge back - they then get their money back off the card company.

The Credit Card Company - they get contacted by the bank and immediately recall the money from the retailer - us - usually some months after the fraud has been committed - long after the fraudster has left leaving no traces so the police will will not do anything.

So no one cares as the only people to suffer are the retailers.

These credit card fraudsters may think they are hitting the big card companies for a small amount but they are taking down businesses. Let me tell you, if I lost £4000 from my company I would go bust - that is me and my family out of a home,  our staff out of jobs - all because of some F*ing shit who trys to exploit a shaky system.

The police need to act on this as soon as it is reported - not sit back and do nothing - this particular fraudster may not have gotten away with it on this occasion with my company but I’m certain, as he has not been caught, he will now move on to the next unsuspecting retailer with more stolen cards.

Bear in mind that the retailer is not the only loser here. In the long run the ease that this fraud can be committed will reverberate through to the card owner. If someone steals your card then the chances are they have stolen you wallet with photos, cash, drivers licence etc that are difficult if impossible to get back. More and more houses will be broken into to get credit cards out and more muggings and thefts will be carried out also.

To me, this problem is out of hand and something needs to be done and fast. I would guess that a minimum of 10% of all transactions are attempted fraud in my stores - this is too high.

Anyone else in a similar situation? Please share your comments.

This entry was posted on Wednesday, September 3rd, 2008 at 10:51 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.