Card-Not-Present Frauds are a new scamming favourite targeting local businesses.
One Pembroke business was recently stung for over 10k.
OPP detachments across eastern Ontario have responded to numerous calls from businesses, including automotive and recreational vehicle dealerships, who fell victim to Card-Not-Present (CNP) Frauds.
The fraudster contacts a business to place an order for a product by phone, email or website, with plans to make the payment using a stolen payment card and a counterfeit driver’s licence.
The product purchased is sent through a shipping company or to an individual picking up the product using a rented van or trailer (also rented with a stolen payment card).
After the order is shipped and charged to the payment card, eventually the real cardholder identifies the fake purchase and disputes the charge.
As a result, the business receives a chargeback and is responsible for paying back the amount.
Alarm bells should be ringing if you are asked to complete a card-not-present sale; the shipping address and the billing address will ideally match.
Automated verification tools are a feature you can investigate with your payment processor.
By Rick Stow
