The Many Faces Of Credit Card Fraud (Part 1)

category: News posted: August 08, 2016

As merchants and merchant services companies struggle to make sure that credit card transactions are safe, it’s becoming clear that there are many different forms of fraud that have to be fought. Though EMV chipped cards are doing their part in reducing one form of attack, it’s clear that a lot more work has to be done to protect users from scammers. Truthfully, there are many different forms of credit card fraud to be worried about. Here are the most common, and how businesses can prevent them.

  • Skimmers – These are the devices that attach onto terminals, scan credit card data, and send it to scammers who might duplicate the cards or just use information to buy goods. The easiest way to avoid having a skimmer attack occur is to have an EMV chip reader, and to check your terminal to ensure nothing additional has been added.
  • Sniffers – Sniffers are like skimmers in the sense that they steal credit card data and send it to hackers. However, these are personally held by hackers, and typically zero in on the credit cards themselves. Most of the time, it’s impossible to tell whether a sniffer attack occurred in your store, and you’re not liable for it if it does.
  • Dupes – Duped cards are credit cards or gift cards that have been uploaded with someone else’s personal banking information. They can be exceedingly difficult to deal with, but the fact is that it’s often easy to find a dupe card. These cards often have no name on them, or have number sequences that don’t really make sense, like 0000 00000 0000 0000. If you ask for ID when you’re dealing with a dupe card, you will most likely make the duper decide to shop elsewhere.
  • Stolen Services – This is rare, but it still happens to service providers and it is still considered to be a form of credit card fraud. If you’re in a service oriented industry, you might run into people who will use their own credit cards, but later claim that it was a fraudulent purchase. This can cause chargebacks for companies that aren’t careful. However, a good contract, complete with an ID scan and signature can prevent these.

These are only a handful of the different forms of credit card fraud out there, and that should be enough cause for concern for you to take care when dealing with credit card transactions. If you want to avoid the most basic of credit card fraud schemes, the easiest way to do it is to have an EMV chip reading terminal and to use a little common sense when putting together contracts. If you need help when it comes to credit card security, give Red Payments a call. We have the solutions your company needs to succeed.