The OPP Anti-Racket division issued a warning to all businesses in the Eastern Ontario region about a rash of “Card Not Present” (CNP) fraud attempts that focus on phony online or remote sales opportunities. A favourite target for the fraudsters are car, truck, and recreational vehicle dealerships.
The CNP fraud involves a call from an alleged customer by phone, email, or through the company’s website. The fraudster uses a stolen payment card and a counterfeit driver’s licence for the payment process.
The goods are either delivered through a shipping company or by arrangement to a person who shows up with a rented van or trailer. Either delivery method also involves use of a stolen payment card.
The fraud is revealed when the actual owner of the payment card contacts the company to protest the unauthorized charge on the card. The business suffers the loss because it has to reimburse the amount charged on the stolen card.
The OPP advise business owners and their employees to watch out for orders that have different names, addresses, and card numbers but all come from the same Internet Protocol (IP) address. Before shipping an order, take care to verify the information provided by a customer. That includes telephone number, email address, shipping address, and other details provided for the order.
Be careful when dealing with “priority shipments” as fraudsters may ask for a “rush delivery” to get their stolen goods before the fraud is detected. In some cases the shipping address may not match the billing address on the payment or credit card provided. Be wary of orders that seem to come from repeat customers but do not match their usual spending and ordering patterns.
Business owners should contact their online processor and make sure security measures are in place for automatic verification of customer orders to reduce the risk of fraud. Any business which is the victim of the CNP fraud can contact their local police, or the Canadian Anti-Fraud Centre, 1-888-495-8501 or www.antifraudcentre.ca, or call CrimeStoppers at 1-800-222-8477 or www.crimestoppers.ca.