NEWS RELEASE
GUELPH POLICE SERVICE
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Today's “Fraud Friday” is about fraudulent payment card transactions. The Guelph Police Service has been receiving complaints from local business owners regarding charge-backs to their business as a result of fraudulent payment card transactions.
How it Works
Leaving cash register open, card not working, trying to use multiple cards, receipt comes out, receipt say keyed; these fraudulent transactions occur as a direct result of the fraudster manipulating the information on the countertop terminal they are provided when paying for their purchase.
The fraudster can cancel the purchase and insert a new card or even manually enter credit card data. They may do this to simply make their purchase with a stolen card or with the intent of having the amount refunded to another card.
In addition, the fraudster will sometimes make the purchase for an amount in excess of the actual transaction amount with the intent to have the business believe they made a mistake and process a refund.
Once refunded or on manual payment entries, the payment processing companies (Acquirer) may hold the business accountable for the charge to the stolen card as the transaction was not in accordance with the merchant’s (business owner) user agreement.
Warning Signs – How to Protect Yourself
Business owners should be vigilant when conducting transactions where payment is made by a card and the suspect is provided the card reader. Some actions to look for when a customer is entering their pin are:
- The person appears to be entering more digits then would be expected for a PIN number
- The person takes out their card and inserts a new card
- The person is trying multiple cards because the previous one is declined
- A customer comes in and makes a small purchase (testing the terminal or attentiveness of the employee) and then returns to make a larger purchase
- A refund is requested on an overage to a gift card or other form of payment
- It is suggested that the employees review the transaction receipt/record and ensure it is not reading it as a manual/keyed entry
It is also suggested that businesses review their merchant agreement with their payment processing company to ensure they are adhering to the agreement.
If a business suspects a fraudulent or suspicious transaction, they are encouraged to contact their Payment Card Processing Company (Acquirer) to investigate the transaction. In addition, they can contact the Guelph Police Service to make a complaint should they suspect fraud. You can also report it online to the Canadian Anti-Fraud Centre. It is suggested that surveillance cameras located in the area of the Point of Sale be working and recording to capture these transactions.
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