First Identified: Recurring, most recently 12 December 2018
Format: Telephone call
A tyre scam which we have reported previously has resurfaced in the Manchester area.
The scam centres on a payment made over the phone for tyres, which are subsequently collected, often by a local taxi firm, but by a van in this particular case.
It is your responsibility to ensure you are taking the proper precautions when conducting card transactions over the phone, as your protection is significantly reduced if you don’t follow the card processing rules, which can lead to a chargeback some weeks later if the card turns out to be stolen.
This has been an issue that we have been aware of for a number of years – we have reported it in bulletins on a number of occasions, and it is a regular feature of our member events. Whenever and wherever it appears, it remains largely unchanged, and one simple rule still applies – never put tyres in taxis (or vans!).
We urge you to read through the rules for conducting these transactions below, provided by Barclays. 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, 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)
As a garage, a credit card payment over the phone should be very unusual, and should immediately put you on your guard.
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).
If you become aware of any suspicious activity, please report it to the IGA Member Helpline on 0845 305 4230 as soon as you can in order for us to alert other members.