IGA News

Be Aware Special: Card Not Present Scams still active in the UK

Be Aware Special: Card Not Present Scams still active in the UK

30 June 2020

The IGA has received an update from member garage M & D Motor Care Ltd, from Hastings, of recent fraudulent activity with an attempted Card Not Present (CNP) tyre scam.

The garage was subject to an attempted fraudulent purchase of 6 tyres at a value of roughly £1600, with a request to pay over the phone and collect from the business premises the next day. When the customer requested this method, the member became suspicious of their intentions and asked them to wait and pay upon the tyres’ arrival at the premises. The customer refused to do so but left a contact name of “Mr Green”, which the garage believes was false, and a mobile phone number the garage attempted to contact to no avail.

Tony Perfect, who runs the business, told the IGA “I remember seeing a bulletin from the IGA about this kind of scam about a year ago and it really stuck in my head – that bit of information turned out to be invaluable in us avoiding being scammed and suffering chargebacks from a credit card company.”

This has been an issue that the IGA has been aware of for several years and appears to be re-emerging since lockdown. Please be vigilant when conducting all transactions; 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.

Tony continued: “On this occasion we were lucky, but there are other businesses we are aware of who have fallen victim to this scam and lost money they won’t be able to get back. It’s really important to reiterate the message about this scam to stop others getting caught out.”

As a garage, a credit card payment over the phone should be very unusual, and should immediately put you on your guard.

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.

Accepting Card Not Present (CNP) transactions by phone

Sometimes it’s just not possible for the cardholder to be in front of you, such as 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 from the service provider and obtain the following information from the purchaser:

- the 16-digit 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 allow the goods to be collected. If a customer pays by phone and then comes to collect the goods, you need to cancel the CNP 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).

If you believe this scam has happened to you, please contact us via the direct helpline number or 0845 305 4230 so that we can make other members aware of what is happening.

You can also read Barclays’ rules for card processing in full here. Other providers will have similar rules, so please check with your bank if you require specific information.