Credit Card Fraud Training

Employees should be trained to spot potentially fraudulent credit cards.

Credit card fraud can result from stolen cards, as a secondary effect from data theft or from deceptive consumers. Training on credit card fraud is a critical for business owners because it can have a significant effect on your financial stability, earnings and ability to accept credit card payments in the future.

Front-line Employee Training

Train front-line managers, cashiers or other employees who process credit card transactions to be able to recognize fraudulent credit cards. Most cards conform to specific regulations for size, including information and appearance. Fraudulent cards might be missing issuing bank names, holographic symbols or a functioning magnetic strip. Additionally, each card type starts with a specific numeric code and card number length that can be used to spot fraudulent cards.

Technical Staff Training

Credit card transactions are often processed digitally through credit card terminals, online payment systems or employee computer systems. Securing the back end of the credit card data storage, authorization and processing mechanisms is essential. Technical support staff, programmers and quality assurance employees should be trained on best practices and PCI security standards requirements for system compliance and fraud detection.

Finance Staff

Accounting personnel, billing staff members and any employee who processes refunds, manages charge-backs or administers merchant accounts should be trained in credit card fraud detection methods. Individuals in these positions might be able to observe patterns and fraud elements that are not visible on a transaction level.

Frequency

Conduct credit card fraud training for new employees, recently promoted staff members and any time potential fraud is detected during your payment processing. The training can be formal or informal based on the competency level of employees and the potential for fraud detection in the employee's position. Include training on fraud detection methods, changes to the credit card processing network and response steps when fraud is detected.

References

• PCI Security Standards Council: How to Be Compliant
• Center for Policy Oriented Policing; Understanding Credit Card Frauds; Tej Paul Behatla et al.; June 2003
• "Bloomberg Businessweek"; Credit-Card Security: Employee Training; Ron Kurtz; Dec. 7 2009