Fraudulent transactions harm both merchants and victims of identity theft. Merchants should check identification and follow company regulations. Online fraud can be identified by card testing, expedited shipments, and fake information. Victims should regularly check bank statements and report any fraud to credit companies, banks, and the police.
Fraudulent transactions are orders and purchases made using a credit card or bank account that does not belong to the buyer. One of the biggest factors in identity fraud, these types of transactions can end up harming both the merchants and the identity fraud victim. Avoiding fraudulent transactions is in the best interest of both merchants and buyers, so it’s important to take precautions when handling money accounts.
Merchants can keep an eye out for certain behaviors that indicate a fraudulent transaction. If a purchase is being made in person, it is vital that you check the buyer’s picture identification and ensure that both the name and picture match. Checking the picture is especially important, as if a criminal has stolen someone’s wallet, he may also have identification matching the name. Be sure to follow company regulations if an unauthorized transaction occurs, usually silently notifying the manager is the first step.
Fraudulent online transactions can follow a few key patterns that savvy traders can identify. A common type of fraud scheme, called card testing, will be presented as a series of declined credit card numbers. The thief is likely using a computer algorithm to systematically test card numbers until a match is made. Once the credit card number is matched, the thief usually checks the expiration dates until a valid combination is found. While order values on card tests are generally low, many merchants are charged for credit card transactions, whether they are valid or not; every time a thief tests another number, the merchant can lose money on transaction fees.
Other indicators of fraudulent online transactions include claims for vastly expedited shipments; offering to pay extra for a purchase; or using a fake name, fake email address, or disconnected phone number. Using online security systems that verify all data can help bring up red flags on many fraud cases. When shipping larger or more expensive orders, take the time to contact the buyer via email or phone and request identification verification.
Victims of identity theft often find themselves in a morass of fraudulent transactions. Credit or bank accounts can be maxed out and even overwritten, resulting in reduced creditworthiness and total loss of assets in some cases. It is vitally important that you check your bank statements regularly to ensure that no unusual transactions have occurred. Also, try to protect your personal information, including your email, phone, and address information. If a person can steal a wallet, he’s surely able to look up a social networking profile on a victim to get more personal information.
Fraudulent transactions must be reported immediately to credit companies and banks as well as the police. In some cases, criminals can be traced if they use stolen credit cards in a local area; merchants may be able to provide identifying details or even security videos. Many banks have a customer-friendly policy regarding fraudulent transactions and will often adjust accounts for a victim if the transactions can be proven to be illegal.
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