Minimize the Risk of Credit Card Fraud
Posted on 30 October 2003 08:32 AM
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If you are a consumer, the chances of your credit card number being intercepted as it travels over the Internet is very small. It is actually at a higher risk when you use it in a brick-n-mortar store, as the merchant not only has all of your credit card details, but also a copy of your signature. If you are an online merchant, the chances of getting orders with stolen credit card numbers are greater, as the person who is using the stolen credit card cannot be seen and may even be located in another country. Unfortunately, merchants are not provided the same protection as consumers when it comes to credit card fraud. In fact, merchants are completely at risk and bear all of the losses. Even when reporting the fraud, the banks, merchant providers, and police are not always able to help -- mainly because they are too busy or feel that the dollar amount involved is not significant enough to warrant further action. Did you know that thieves can now create fictitious credit card numbers based on the algorithms used to produce authentic numbers?! These fictitious credit card numbers pass through verification and will be given approval codes. Further, there are newsgroups that post stolen credit card data (so if your card number is stolen, it may be posted to the world in a matter of minutes). The following are some steps you can, and should, take to minimize your risk of credit card fraud:
Other ResourcesAn excellent book on how to protect yourself against online scams and cyberspace invaders called Risky Business: Protect Your Business from Being Stalked, Conned or Blackmailed on the Web by Dan Janal provides good ideas for merchants to minimize the risk of credit card fraud. You may obtain this book now by clicking here. Discover Financial Services also provides tips that should help merchants greatly reduce the chances of online credit card fraud:http://www.discovernetwork.com/merchants/fraud-protection/fraud-faq.html | |
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