Credit card fraud targets merchants
Merchants need to be aware of credit card fraud that seeks to prey on small businesses. Recent telephone scams in certain parts of the U.S. involve an identity thief calling a small business in hopes of snagging some credit card information.
The scammer may pose as a member of the local police force or as an employee of a credit card company in an effort to get merchants to hand over credit card numbers used by shoppers.
While pretending to be a police detective, thieves have been known to claim they recently caught some individuals suspected of credit card fraud. The fraudster then tries to convince whoever they speak with to provide information from recent credit card transactions.
Next, the thief will say they need to input the merchant's credit card transactions in manually, and require credit card numbers and information. The thief may explain that he will call back after first inputting the information.
In either case, or whenever a merchant or consumer gets a call where the other person's identity cannot be verified, the best thing to do is to hang up. A quick call back to the police or credit card company can verify whether they were in fact responsible for the earlier call.
When a scam or potential scam occurs, merchants should get in touch with their local police department to file a report.
Published: May 10, 2007
- Debt buyers may get exemption from collection rules – The U.S. Supreme Court heard arguments Tuesday on whether companies that buy debt should be exempt from consumer protections that apply to debt collectors ...
- Can a prenup or postnup save you from a spouse's debt? – They are not foolproof, but they certainly put you in a much better position ...
- Supreme Court inflicts blow on credit card surcharge ban – State laws that block merchants from slapping surcharges on credit card users were dealt a blow by ruling that they affect free speech rights ...