How to Avoid Credit Card Fraud in Retail
Credit card fraud is an ongoing problem that affects consumers and businesses alike. According to Barry Masuda in "Credit Card Fraud Prevention: A Successful Retail Strategy," credit card fraud costs the United States about $2 billion each year. Retailers who learn to recognize signs of a stolen card and a fraud shopper can avoid credit card fraud.
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Instructions
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Learn to profile possible fraud shoppers. According to Barry Masuda in "Credit Card Fraud Prevention: A Successful Retail Strategy," common characteristics of a fraud shopper include a preference for items that do not have to be delivered, an eagerness to complete the transaction quickly, purchase of expensive items that will be easy to sell on the streets and purchase of more than one of such an item. Fraud shoppers will have the credit card in their hand or in their pocket so that it is separate from their wallet and a means of identification. They also choose to shop during busy periods when the sales associates are too busy to closely examine the card and any identification proffered.
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Contact store security personnel if a customer appears to fit the profile of a fraud shopper. Have security monitor the shopper's movement through the store and ensure that their image is captured with a surveillance camera.
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Examine the credit card that the shopper presents. Compare the signature on the receipt to that on the back of the card and compare the address the customer gives to that associated with the credit card. Call the credit issuing company to verify the identification of the card owner if you suspect that the card is stolen. It is best to take the receipt, identification and credit card with you when you leave to make the call in the event that the shopper decides to run away.
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Call the police when it is confirmed that the customer is using a stolen credit card. Security personnel may hold the shopper at the store until the police arrive.
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Tips & Warnings
Train your staff to recognize signs of credit card fraud. Consider rewarding those who are able to stop a fraudulent shopper. The incentive will help the staff remain vigilant.
