A New Credit Card Fraud That Will Render Credit Cards Useless For Telephone Orders

A new and unbelievably easy type of credit card fraudster is coming to the attention of retailers who take telephone orders with credit cards. The credit card companies like VISA, AMEX, Barclaycard Etc unbelievably do not check the name on the front of a credit card when processing card information. This easy check is open to unscrupulous fraudsters and the banks simply pass the cost of the fraud over to retailers.

Here is an example on how easy it is: You purchase a television for example (or other expensive item) over the telephone from a retailer with YOUR credit card giving the correct card number, address the card is registered to and CV2 (3 numbers on back of card), BUT give a different name to that which is on the front of the credit card, you would then be able to commit the following fraud without any problems or consequence from the card issuer, bank or police.

Simply wait for the stolen television to arrive, then wait for your credit card statement to come through and then dispute the transaction with your credit card company saying you did not order anything from that retailer. The credit card company will check the transaction and see a different name to that which is on the front of the credit card face and instantly think it is fraudulent. They then issue a chargeback to the retailer. The merchant will always pick up the tab for your free television. If you had 5 or 6 credit cards from different banks you would be able to commit this fraud once on each card and easily get away with it.

This is a ideal fraud for someone who is only going to be moving to different addresses during there fraudulent work life because the banks have no system in place to track or combat it and they simply can not keep tabs on the different addresses the fraudster has moved on to. There is no way of stopping this growing fraud other than the banks putting a better system in place, i.e checking the name on the front of a card when processing would be a start! ! !

Even big credit card companies like Visa seem to have no procedures for this type of fraud. They even market themselves as ultra safe, But for who, the fraudsters??? Here is what Visa says: "Visa provides the Verified by Visa service to add an additional layer of security to your transactions. Verified by Visa protects your card against unauthorised use. Look out for the Verified by Visa logo on your favourite websites". I would like to add to their statement " But the basics like checking the card name we will not implement and we have no procedures in place for checking persistent fraudsters"

So Remember Kids, here is how the banks let you get away with it:

1) choose an expensive item to purchase from a retailer who excepts cards over the phone

2) purchase the item with your own credit card(s)

3) give all the correct information including credit card number, CV2, your address etc

4) give a false name when purchasing to that which is on your credit card

5) wait for your new stolen item to arrive at your house

6) wait for your credit card statement

7) ring up your bank and say you did not order anything from the retailer

8) The bank will instantly give you your money back because the name is inconsistant with your cards stated name.

9) Enjoy your stolen (bank endorsed) item with complete confidence there will be no come back

10) move to a different address and do the same process over again.

UK Air Conditioning Firm avoids £50k scam thanks to vigilant bank

BY KEELEY KNOWLES

A business had a lucky escape from a suspected scam after being asked to transfer almost £50,000 to a company in Dubai.
Orion Air Conditioning & Refrigeration Ltd, based at Bedford Technology Park, Thurleigh, was initially contacted by a man called ‘John’ who said he was from A-Four General Trading LLC in Dubai last month. He wanted to order around £5,000 of solar panels to be delivered to the country.
The sales team sent him an invoice with the firm’s bank details so he could pay the sum.
But earlier this month, Sean Handley, sales director at Orion, said they received notification from their bank – Lloyds TSB – about a cheque paid in to the branch in the High Street, Bedford, suspected to be fraudulent/counterfeit of £49,600.
In the meantime the company had received an email from the same address – this time from somebody called Mike – asking to confirm the payment ‘as soon as possible to enable us to proceed’.
It said that due to an ‘erroneous blunder made by the financial department’ they issued Orion’s payment with another company’s payment – therefore resulting in the £49,600 instead of the £4,797.
Mr Handley said: “The scariest thing about this is that somebody actually went into our branch bank in Bedford to pay in the cheque. We do deal with companies in Dubai so had no reason to suspect the order initially and so sent them our bank details.
“But what happens is that they then say they have overpaid you and ask you to transfer the money back to their account. While it shows on your account, it hasn’t actually cleared, so if you transfer the money then you’ll be out of pocket.” Mr Handley said he contacted the named ‘drawer’ of the cheque – an independent retailing and distribution company CJ Lang & Son Ltd, based in Dundee, and was told that somebody had stolen their cheque book a number of years ago.
He added: “When I spoke to them they said they had received a few calls about it. Luckily, Lloyds Bank is on the ball with this sort of thing and flagged it up before it got any further.” A spokeswoman for Bedfordshire Police said that a statement would be taken from Mr Handley and his colleague next month but it was likely the case would be referred to a police force in Scotland.
A spokesman for C J Lang & Son Ltd said: “We do not have a trading relationship with Orion nor have we issued any cheques to them.
“The cheque which Orion received is undoubtedly a forgery. We are grateful to Orion for making us aware of this attempted fraud and we have advised our bankers accordingly.”
A spokesman for Lloyds said: “We take fraud extremely seriously. We have a range of measures in place to help detect and prevent instances of fraud, but we also urge our customers to remain vigilant to suspicious activity relating to their businesses.” We could find no record of A-Four General Trading LLC in Dubai.