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credit card fraud - Complete Controller

ID theft statistics

Identity theft has become relatively common in today’s world. In the year 2016 and the year 2017, ID theft statistics have attracted a lot of attention and interest. These facts and stats encompass the entire territory of cybercrime. Even though ransomware garners more attention, ID theft remains much simpler to execute and monetize. Credit card numbers, social security numbers, and other private ID issues can be embezzled and sold on the web. There is also the possibility that offenders can use the information for a fast and secure income.

ATO (Account takeover) fraud is seen to make a comeback last year. Just as the name implies, the Identity thief utilizes the victim’s stolen personal data to enter their account and get a new card delivered to them.

These reasons are why it is essential to be familiar with the concept of bookkeeping. Bookkeeping helps you to understand and analyze accounting, finance, and statistics.

Some common kinds of identity theft occur. According to the Federal Trade Commission (FTC), the government agency maintains a warehouse for ID theft complaints. Provided below are some statistics related to credit card and ID theft. Check out America's Best Bookkeepers

  1. 34% Tax-Related or Employment Fraud

When a criminal utilizes someone’s Social Security Number and other personal data to apply for an income tax return or to acquire employment.

  1. 33% Credit Card Fraud

The crook utilizes someone’s credit card or just the number to obtain fraudulent purchases.

  1. 13% Utilities or Phone Fraud

The crook utilizes someone’s data to open a utility account or assess their wireless phone. Check out America's Best Bookkeepers

  1. 12% Bank fraud

The crook utilizes someone’s data to take possession of an existing commercial bank account or create a new account in that victim’s name.

  1. 7% Lease or Loan Fraud

The lessee or borrower utilizes someone’s data to gain the lease or loan.

  1. 7% Government Benefits or Documents Fraud

The crook utilizes stolen personal data to attain government benefits. Check out America's Best Bookkeepers

Credit card fraud

Regardless of the circumstances that credit card fraud only influences about one% of its fraction, as per the information by the Federal Reserve, the situation is a significant concern among customers. Regardless of how small the offense fraud is, no individual wants their hard-earned cash drained away by criminals.

According to The Identity Fraud Study, new account scam continues to grow. Alongside, account takeover fraud has also flourished dramatically. New account scams recorded nearly doubled the previous year.

As Europay, MasterCard, and Visa (EMV) technology advances and becomes widely adopted,  the criminals out there are shifting their strategy and opening up new credit accounts in the name of the victims. These criminals are buying stolen information such as Social Security number, name, mother’s maiden name, date of birth to open a new account.

Credit card fraud and new account fraud offers another benefit for the thief. They can go unnoticed and hidden for a more extended period. This extension is because the unfortunate victims do not get to see unauthorized charges made on their statement issued for their credit card as the crooks have generated a brand new account, and the credit card statements go on that account.

The other disturbing finding was that stealing cellphone accounts approximately doubled from the year 2015. Through the misused Social Security number, the credit card criminal can get hold of your account and divert all your text messages and emails.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Credit Cards Theft Concept. Hacker with Credit Cards on His Laptop Using Them For Unauthorized Shopping. Unauthorized Payments
Falling prey to a sale made with a stolen credit card is something many businesses, especially small ones, do not consider until they become a victim. It makes you vulnerable to losing money and trust. As a business, you want to minimize the risks and cut losses when it comes to such a fraud.

Even though credit card fraud is a rare occurrence, if your business accepts them, it is something you can’t neglect. It is estimated that such activities cause losses amounting to $16.31 Billion around the world and almost half of these are reported in the United States.

It can happen regardless of whether your business operates online or offline and can also be conducted on a massive scale. A particular group was caught and charged with conducting a credit card fraud that had caused losses of around $13 million over a period of 16 months.

Usually, holiday seasons are profitable times for all kinds of business owners. Sadly, the profits can fade away if any such loss takes place, resulting in additional liabilities for the business or the owner. It is seen that many businesses start placing preventative measures only when they are hit by a credit card fraud. It is suggested that owners take proactive measures to prevent such losses from affecting them in the first place.

Spotting Fraudulent Orders

If your business takes orders online or over the phone, there are a few things you can do to screen suspicious orders. One of the most common methods is to ask for AVS or CVV verification methods. These methods are specifically useful in transactions in which the credit card isn’t physically present.

Other things that you can look for are:

  • Large or expensive orders placed online, especially if they require things like same day shipping or overnight shipping
  • Buyers who claim they will place a large order and ask for a catalog or list of what you sell
  • Customers who are hesitant to provide personal information, such as phone numbers or full name
  • Shipping to foreign countries paid by a US card or orders with different billing and delivery addresses

It’s not feasible to label a transaction as fraud if it fits only one condition. However, the presence of several reasons could be reason enough to be suspicious. It is suggested that you investigate the matter in order to avoid losses.

What should be done to further investigate the order?

If you find several of the above things applicable to the order, you have legit reasons to be suspicious. Now, in order to thoroughly analyze whether it is fraudulent or not, you can do a variety of checks to make sure that the order is being placed by the cardholder or someone authorized by the credit card holder. These are:

  • Request complete information on the cardholder such as name, address, phone number and zip code.
  • Make CVV a compulsory requirement for transactions.
  • Verify the provided information through the bank or whatever other verification system is practiced in your area. If the information doesn’t match up, decline the order.
  • Block transactions through a service that intercepts the order based on the region of origin and other things. These services are available easily for a fee.
  • Attempt to call on the contact information of the cardholder. Decline the order if you can’t reach the cardholder.
  • Look up local orders and match them with phone numbers and addresses in the phone book.
  • Utilize an address verification service to mark suspicious sales and block them, if need be.
  • When you ship the product, it is smart to send a reminder message. Sometimes people forget what they have ordered. Sending a letter to the billing address may also help you verify the order.

If you take up these steps, which are essential for cutting losses, your business will be doing all it can to avoid credit card fraud.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.