Is No One bothered About Credit Card Fraud?
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.
September 3rd, 2008 at 9:30 pm
I couldn’t agree with you more, it is really crazy to think about. A friend of a friend found out she was a victim of identity theft two weeks ago. Listening to her talk about it is amazing. Talk about having your whole life turned upside down. As a small business owner myself, if this happened to me I would be completely wiped out.
September 5th, 2008 at 1:48 pm
Completely agree. It’s one of the reasons why we don’t put order forms on our site, we get people to phone instead. Then again we’re more of a B2B service. I sympathise with you guys
Cheers, Jon
Jons last blog post..Starting a Salon - What to name your salon?
October 7th, 2008 at 8:07 pm
I use to run into this allot back when I was in retail, this has been going on for years. There is very little sellers can do. The truth is the credit card system is setup to protect the buyers and not the sellers.
October 8th, 2008 at 8:01 am
This blog Is very informative , I am really pleased to post my comment on this blog . It helped me with ocean of knowledge so I really belive you will do much better in the future . Good job web master .
October 12th, 2008 at 1:35 pm
Nice one!
October 13th, 2008 at 8:13 pm
Excellent post! thank you for sharing. I found your site interesting and valuable.
Roberts last blog post..oak village
October 21st, 2008 at 10:02 pm
Great post. I found your blog very interesting and informative. Keep it up.
October 29th, 2008 at 4:28 pm
Excellent post! I did learned a lot today from your site.
November 4th, 2008 at 7:11 pm
Actually, to change something much work should be done: from higher levels of protection for the credit cards to more attention from police and the government. And who cares, unless it brings any profit? Nevertheless, let me sympathize with you.
November 5th, 2008 at 3:38 pm
Your blog is very helpful, everyone can get in this situation, because we all have credit card. I also think, that it is better to get people to phone. But anyway it is a big problem, and something must be done by the government.
November 11th, 2008 at 4:01 pm
Very nice! I found your blog so useful and valuable. I did learned a lot today. Thank you very much.
December 18th, 2008 at 10:37 am
I’m concerned about credit card fraud, I’m glad you wrote this post. I’ve design and developed numerous online sites and trying to make sure your site is fraud proof or at least as good as you can get it is tough sometimes.
December 25th, 2008 at 7:47 pm
I never figured out what the 3 digit code on back is for. I agree if they do not get arrested they just keep doing it. If you go to store and hand fake bill to clerk they arrest you so why not credit card.
I wonder if you could send product after transaction clears and so many days so they can not refuse payment.
Kens last blog post..High yield savings account.
January 21st, 2009 at 11:11 pm
hhahahahahahaha thats so funny u guys are like sitting ducks rawrrrrrrr hagd muahhahahahahha
February 4th, 2009 at 2:15 pm
Totlly agree with Ken, they should be arrested and I too only rcently found out about the three digit code on the back. Thanks for the refresh
February 8th, 2009 at 5:42 pm
I can not understand why credit cards do not check name to adress to stop this. If your sending something to another state they should make you reply to email to confirm it.
February 11th, 2009 at 1:07 pm
I just read about how banks are now confirming any new address changes. this way people can not change your address and open new accounts . I wonder why it took them so long they could stop most of this with a few simple changes.
February 12th, 2009 at 1:05 pm
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February 21st, 2009 at 2:15 pm
I just read that credit card companies re issued new cards after security failed and peoples id was compromised. It would not be hard to stop it and sooner or later they will loose so much money they will.
mitchs last blog post..los angeles cheap dsl.
February 23rd, 2009 at 7:58 pm
One thing you forgot is everyone has to pay higher fees and intrest to cover the cost the credit cards loose. I blame the credit card companies they could check adress to name and id.
March 2nd, 2009 at 10:24 pm
Funny how the credit card companies can find someone when they need to be paid but can not tell if someone from another country is using card. They can raise fees and do what ever they want but not secure peoples credit cards.
erics last blog post..paidsurveys
March 11th, 2009 at 11:45 pm
I know credit card companies will now watch what is going on. Since they are worried about the money they owe out and people owe them i am sure they are making sure they try to stop some of this now.
marks last blog post..drywall screw gun
March 12th, 2009 at 8:04 pm
Thanks! Now that I got to know more about internet marketing, I am now joining the great global competition. Wish me luck!
March 15th, 2009 at 6:01 pm
I think the law passed in the US will help a little. Credit card companies now have some more rules that take effect next year. They do not let them charge and change rates like now and maybe they will worry more about fraud since they make less.
March 19th, 2009 at 12:13 pm
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.online retailers do not have these facilities to hand. And all the fraudsters who used to target our high street stores now come online as it’s easy pickings.chances are the person who nicked your card could find your address from the rest of your belongings they stole and simply loiter outside your house to collect the goods.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.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.so thanks for the nice post.
March 22nd, 2009 at 11:46 pm
The credit card companiesjust seem to let all the transaction go through then say they need to have high interest rates to pay for losses. They should just check adress of card holder against place they are suppose to ship to.
Franks last blog post..Photograpy
March 26th, 2009 at 8:02 pm
I’m also concerned about credit card fraud, It is good to comment on this post. I commented on various sites about credit card fraud. So, next time when you go for shopping, be careful about your credit card.
April 5th, 2009 at 11:49 pm
Great site and fantastic post. It’s nice to see that we share the same ideals.
April 7th, 2009 at 5:34 pm
One thing you forgot is everyone has to pay higher fees and intrest to cover the cost the credit cards loose. I blame the credit card companies they could check adress to name and id.
April 10th, 2009 at 8:53 pm
Right now the credit card companies are pulling back credit from millions of people. Funny thing is some of the best people with great credit scores and history and getting credit cut because the credit card companies do not make any money off them they pay thier bills off every month. Maybe if they stopedall the credit card fraud they would be able to make more money and not be in the mess they are now.
andys last blog post..Oil etf.
April 17th, 2009 at 11:59 am
To me, it seems that no one is. People are treating this matter so superficial, when in fact, they could lose all their savings in a second.
April 17th, 2009 at 1:58 pm
Funny how credit card companies can look up every transaction and credit history with income befor ethey give credit card but will not check transactions for fraud. Thyey could very easy check to see if crad is real and address is real before allowing any of them.
marks last blog post..Broadband phone voip service.
April 22nd, 2009 at 1:13 pm
I admit, I have not been on this webpage in a long time… however it was another joy to see It is such an important topic and ignored by so many, even
professionals. I thank you to help making people more aware of possible issues.
Great stuff as usual….
April 25th, 2009 at 7:59 pm
This is so frustratingly true - as a merchant, it all falls on you and the banks and cops don’t care about the millions being stolen.
May 15th, 2009 at 2:37 pm
Credit card companies check everything out when you apply for one except if your adress is correct one. That makes no sense they pull credit reports and income but do not check address. Why would someone get credit card sent to another state or country so i blame them and they should pay for anything that people do this.
cathys last blog post..Hotels in key west.
May 21st, 2009 at 1:51 pm
Credit card fraud should be handled with more firm laws….hair loss treatment products
May 26th, 2009 at 8:42 am
I think that many people are bothered by this. The problem is that they only become “bothered” only after this happens to them..
June 3rd, 2009 at 4:34 pm
Most online e-tailers do not seem bothered by the idea at all until they get caught up in a mess involving a stolen card.
I also worry about many of these smaller shops and the access to their database which holds credit card info. Many are not too picky about who they hire to work on the site and this gains that person access to the data.
June 20th, 2009 at 5:40 am
Law enforcement is noT going to help you. I’ve been told that unless the amount lost is over $50,000 then they won’t bother. I did report a loss of $750+ to officials in Miami, however no one called back (and I don’t expect them to). If you accept credit cards, then you must include in your budget for the year a line item for chargebacks, because they are inevetible. HP0-J23
June 30th, 2009 at 8:28 am
Credit card fraud and identity theft are becoming alarming issue because of how powerful technology can get.
July 3rd, 2009 at 3:53 am
I’m very worried about credit card fraud. Good thing I don’t have one anymore…
July 10th, 2009 at 5:03 am
I think it’s a law of averages thing where the credit card companies figure losses are acceptable when they recruit and qualify cardholders with questionable credit because they can pass losses on to customers of good standing. The liberal availability of credit is how we got to be in this predicament anyway.
July 22nd, 2009 at 1:18 pm
I think the credit card companies need to be doing more. After all it is their product being used to commit this crime. They encourage people (customers and businesses) to use their cards so it should be their responsibily to make sure they are safe. The problem is they can claim the moey back from retailers and therefore they don’t have as much incentive to make sure it’s safe.
July 27th, 2009 at 5:06 pm
Really it bothers me alot. But when you really consider all the ways that a thief can get your info there is not much you can do to stop it. The better route is to pay for insurance on this and hope it does not end up happening.
August 12th, 2009 at 4:21 pm
The banks have a lot to answer for, even now the cost of credit cards is at an all time high.
September 17th, 2009 at 1:29 pm
Credit card frauds are really widespread nowadays and it seems that no matter how many safety devices or methods are invented, there’ll be people who still do their job much better than you.
September 22nd, 2009 at 2:57 pm
Credit card fraud can be damaging to individuals and corporations. If you or your business suspect credit card fraud then it is vital to seek legal and intelligence help as soon as possible.
The longer it is left un-investigated the more likely it will be that the fraudsters will have covered their tracks or got away.
October 29th, 2009 at 7:34 am
this is an excellent article about credit cards.this will really keep me a cautious lot.and yes credit card frauds are really spreads all over in this time.
November 3rd, 2009 at 10:59 am
Credit Card Fraud is very normal now a days because companies giving to those people who have not enough money to maintain it. Anyways keep it up and keep sharing.
November 19th, 2009 at 9:42 am
Thanks to this site because after visiting this i came to know about many unknown things about computers and internet.I always buy things from online enterprises.Last month i bough several thing for my office from http://www.micropartsusa.com/ and they are doing good.It is a matter of sorrow that many cheats are done through many sites.Those site owners should be punished by the law enforcers.Anyway best wishes for this site.
November 26th, 2009 at 1:05 pm
credit cards frauds are really spread all over the world.it seems that no matter how safety devices are invented.
November 27th, 2009 at 2:11 pm
your article is really useful and i agree the credit cards frauds is available in wide variety
December 29th, 2009 at 7:41 am
WELL CREDIT CARD IS VERY IMPORTANT FACTOR WHEN THE TIME COMES TO GET LOAN.I GOT GOOD INFORMATION HERE SEEMS VERY USEFUL THANKS FOR POSTING THIS ARTICLE.
January 9th, 2010 at 1:06 am
definitely people bother about the credit card fraud and now government take very hard action against the fraud doing person. and when you scratch the card it tell you about the money into account
January 11th, 2010 at 8:18 pm
this is one of the reasons why i don’t have one anymore. sometimes it is better to stick with cash alone.
January 12th, 2010 at 1:25 am
This is a big problem and needs attending to asap, I am fed up of dealing with it through my website!
January 14th, 2010 at 4:48 pm
First and foremost ensure that the sites you are using are secure. It’s always better to use a site that you know a friend has been using successfully for some time or a site that is advertised widely such as Amazon or Play.com. These are large sites with thousands of users, so they will have to provide the most secure methods possible for transactions. If you come across a site you haven’t heard of before then make sure you check up on it before providing your details to them.
January 22nd, 2010 at 6:58 pm
actually i don’t know who is responsible or who is not since this type of fraud not happen to me so far and i hope it will not happen to me in future.
February 1st, 2010 at 9:56 am
I decided to look around your site more and one of the best ways to build loyalty is to offer free content like you do here. I appreciate your site and your helpfulness.
February 2nd, 2010 at 5:48 pm
i think didn’t take it seriously because of the loose action taken by government in this case so people take it very lightly so my advise is that the law should be more hard so that people must be scare of doing such fraud.
February 9th, 2010 at 8:38 am
Really wonderful piece of information and I appreciate it that you share something so useful with the readers of this blog.i never about it before and you say we can say some what a awesome way i am fully satisfied about that topic thanks for that post really by heart.
February 10th, 2010 at 3:37 pm
I am always using verify by visa service for all my credit cards when using the cards for online shopping…
March 8th, 2010 at 9:19 am
Thanks for such a wonderful advice. I am sure that this is going to help us further to avoid any jeopardy.
March 10th, 2010 at 9:59 pm
Thank you for article.