Protecting your online store

Owning an internet shop or accepting money for goods or services is common practice these days for many website owners; however, as we’re all aware, criminals are forever finding new ways to defraud business owners.
An example of a common scam is where a fraudster, posing as a customer, asks to have an item shipped abroad using their own preferred haulage or courier company. It usually goes something along the lines of this:

• The fraudster sends the payment up-front to the vendor in the form of a cheque or by Credit Card for the cost of the goods AND the cost of the haulage
• The vendor arranges and pays for the haulage using the fraudsters requested haulage company which turns out to be a fake company
• It later transpires that the payment to the vendor was made using either a fake cheque or stolen credit card details

The signs of internet fraud

A payment that appears to have arrived is not proof that a transaction is legitimate. If a customer asks you to forward money to an unfamiliar courier, stop and contact your bank or payment provider through a trusted route before proceeding. Liability and recovery depend on the facts and provider terms; do not rely on a generic rule about cheques or cards.

In order to avoid falling for a scam, it’s useful to be aware of the common signs of fraudulent activity, such as:

• Customer asks to pay using Western Union Money Transfer
• Customer asks to use their own courier or haulier
• Customer pays by cheque but demands the item be shipped immediately
• Customer asks for item to be shipped to an address other than the credit card billing address
• Customer attempts to place an order by email
• A single order placed using multiple cards
• Orders requested to be rushed or ‘shipped overnight’
• International recipient addresses – these need to be checked very carefully
• Unusually large orders
• Orders from ‘high-risk’ countries
• Telephone number disconnected or wrong

If you are unsure, stop and ask your bank or payment provider through a trusted contact route. Do not ask customers to email or fax copies of payment cards and identity documents as an improvised verification process. Follow the checks and secure handling process agreed with your payment provider.

For more information, Visa has a guide to protecting your online store:
https://www.visa.ca/en/merchant/fraud-prevention/fraud-warning-signs/protecting-your-online-store/
Of course, you’re always welcome to phone us if you have any concerns!