weerapat / Depositphotos.com
CALGARY – The Better Business Bureau is warning Alberta businesses about a credit card scam involving fraudulent purchases of expensive merchandise, leaving companies without payment after the goods have been shipped.
The BBB says fraudsters are contacting businesses and purchasing high-value products using stolen or fraudulent credit card information.
“Fraudsters are contacting local businesses and purchasing high value goods using stolen and fraudulent credit cards,” said Mary O’Sullivan-Andersen, president and CEO of BBB Alberta and East Kootenay.
“This scam was targeting the trucking industry in Saskatchewan last month and now it’s circulating in Alberta.”
According to the BBB, the scam typically begins when a caller provides credit card information over the phone to purchase merchandise.
The transaction initially appears to be approved, prompting the business to ship the products by courier.
However, after the merchandise has been shipped, the transaction is declined, leaving the business without payment or the goods.027
“A transaction can be approved and then cancelled. This can happen when a preliminary approval is provided by the issuer but a fraud or identification warning is later triggered which may freeze or cancel the initial approval,” O’Sullivan-Andersen said.
The BBB says businesses should watch for several warning signs, including customers attempting to use multiple credit cards, placing repeated orders for expensive products or demanding rush delivery.
Other red flags include billing and shipping addresses that do not match, or purchases where the buyer’s name differs from the credit card holder’s name.
Businesses are encouraged to verify customer identities, use credit card network verification services and contact their payment processors to ensure appropriate security measures are in place.
Suspected fraud should also be reported to police.
“This type of fraud can quickly amount to hundreds of thousands of dollars in losses,” O’Sullivan-Andersen said.
“All businesses should implement protocols to verify a customer’s identity and the credit card information being provided.”
Comments