Be Aware Special: Card Not Present scam happening nationwide
It has been bought to the IGA’s attention that the re-occurring Card Not Present scam, where goods (often tyres) or vehicles are purchased over the phone using stolen credit card details, is now happening nationwide on both credit and debit cards.
The RMI Legal team advised that as of 27 October 2020, they have received further queries regarding member businesses losses due to tyres purchased with stolen credit card details.
They have warned members to be extra vigilant during the pandemic, as there has been an increase in distance sales to help maintain business’ revenues.
In previous attempts at defrauding garages, goods such as vehicles have been collected within 24 hours of the fraudulent purchase. Further purchases are also attempted before the credit card company charges back the outstanding balance, leaving the trader with no goods/vehicles and no payment.
A new development in a recent instance is that the card details used to conduct the purchase have been stolen from another garage business, who shared them via an online transaction to purchase parts.
This has been an issue that we have been aware of for a number of years. Please be vigilant in regard to safety when conducting card transaction in all ventures; in person, online and via telephone. If you are at any point unsure of the legitimacy of a transaction, do not proceed and contact your banking provider to verify your queries.
We advise you to read through the rules for conducting these transactions below, provided by Barclays, but you may need to check with your own card processing provider to ensure you comply with any specific rules they have. If you have not done everything within your power to ensure the transaction is genuine, you are responsible for the losses.
Sometimes it’s just not possible for the cardholder to be in front of you, like if you’re taking payments over the phone. Whilst you can take Card Not Present transactions, it’s important to understand that there are higher risks involved.
When you accept these payments, you’ll need to get an authorisation and make a note of the following:
- the card number
- the card expiry date
- the cardholder’s full name and address
- their postcode and phone number
- the delivery address and name of the person receiving the goods
- the gross transaction amount (that means the total amount including postage, packaging, VAT etc)
- the card security code (CSC)
When dealing with CNP transactions, make sure you don’t let the cardholder pick up goods in person. If they pay by phone and come to collect the goods, you need to cancel the transaction and carry out a Card Present transaction instead.
This means that you must never give the goods to anyone who claims to be collecting them on the cardholder’s behalf (like a taxi driver).
You can also . Other providers will have similar rules.