Tag Archives: credit card fraud

Tips

Preventing In-Store Credit Card Fraud this Holiday

November 18, 2015 Abtek Leave a comment

With holiday sales projected to increase by 3.7 percent this year, merchants are looking forward to ending 2015 with a bang. But, with the slow adoption of EMV®, it’s quite possible that the criminals, thieves and frauds could put a damper on your holiday cheer (and profits). The good news is that you can help prevent fraud by taking these key steps:

Look for Abnormal Behavior

Of course, there are the obvious tells that someone is doing something they shouldn’t be—they’re in a rush, they won’t make eye contact with you, they seem jittery, etc. But also know that every industry has its own type of clientele with unique buying habits. For example, in the jewelry industry, it’s quite common for customers to negotiate prices. If a customer comes in and has no problem forking over the actual ticket price for a high-priced item, it could be a red flag for fraud. Identify some key behaviors of your typical customers, and use these as a benchmark for identifying fraud moving forward.

Keep Good Records

Let’s say a customer comes in and claims that you charged them for an item they didn’t buy. This scenario could play out in a few ways:

The customer made the purchase, but is running a scam
The cashier made a mistake and rang up an incorrect or duplicate item
The purchase was made with the customer’s stolen credit card (or a fake card with the stolen number)

While it’s important to handle this situation delicately, in case the mistake is on your end, it’s critical to verify the customer’s claims before making a refund. The proof is in the paperwork. This is where organized receipt archives come in handy. Pull up any receipts that are tied to the customer’s credit card. Verify that charge did take place, then take a look at the signature field and compare it with the signature on the customer’s ID. Signed documentation (i.e. receipts) can help you win a dispute against a customer who is trying to take advantage of the chargeback system. If you’re looking at a potential mistake on your end, but the customer signed off on the transaction, it’s up to your discretion whether or not you make the refund. If it turns out that the purchase was made with a stolen card, the liability will fall on the card-issuing bank (as long as all EMV requirements have been met).

Train Your Staff

We can’t stress enough how important it is that you train your staff on proper processes for handling credit card transactions. Now’s the time—before the holiday sales rush hits full speed—to hold a workshop for your employees on maximizing security and preventing fraud. Not sure where to start? The Abtek Team is here to help. Give us a call today at (800) 544-9145 to discover how we can help you prevent in-store credit card fraud this holiday season.

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Breaking News

Digital Transactions: Don’t Let the Scourge of ‘Friendly Fraud’ Hurt Your Bottom Line

July 15, 2015 Abtek Leave a comment

Tami Cohorst, Abtek’s Vice President, was recently featured on Digital Transactions, an online business publication focusing on trends in the electronic exchange of value.

You may have heard the term, “friendly fraud.” It’s no surprise, then, that there’s nothing friendly about it. And it’s quickly becoming a major problem for merchants across the globe.

Friendly fraud, also called friendly-fraud chargebacks or cyber-shoplifting, occurs when a customer makes a purchase online and then files a dispute with his or her credit card company, claiming that the charge was fraudulent or that the product was never delivered.

Continue reading the full article on Digital Transactions →

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Data Breach, Merchant Service Providers

Merchants are at Risk, Too! Here’s How to Keep your Data Safe Online

May 28, 2015 Abtek Leave a comment

We always stress the importance of having secure payment processing solutions so that you can ensure a positive shopping experience for your customers. But don’t forget: You and your business are consumers, too! It’s important for you to be aware that other businesses’ online platforms might not be as secure as yours. When your data is put into the wrong hands, you could be in for a lot of trouble (i.e. identity theft, stolen credit card information, computer hacks, etc.)

The solution? Good habits help merchants safeguard their sensitive business data online. Below, we’ve put together some of the most effective ways to ensure your online data is safe:

1. Choose a Secure Password

Once upon a time it was acceptable to create a singular password for all online accounts. Your password could even be as simple as your business name! But those days are now far behind us. Today’s hackers are smart and the less secure (complex) your password, the easier it is for them to access your data. The best way to keep your data safe is to choose a unique password for each online account. Your passwords should include a mix of upper and lower case letters, numbers and special characters, if allowed. To make it easy, you can use a password generator, like this one by Norton. Keep in mind: High profile businesses should change their passwords several times a year, according to Credit.com.

2. Keep Your Email from Getting Hacked

When your business email gets hacked, you can do some serious damage. You might not even know it was hacked until a client asks you why you sent that “super weird video.” Awkward! An email hack can happen to the best of us, but there are steps you can take to prevent it. First, take our advice and change that password! The more secure the better. While you’re on the settings page in your email, see if there’s an option to implement two-step authentication. This links your email account with your phone number, so anytime you (or a hacker!) logs into an “unrecognized” device, you’ll receive a code on your phone to enter on the device in question. Also remember to be smart when opening email, if a message looks iffy, just don’t click on it!

3. Shop Safely Online

First things first when shopping online: Do not ever enter your credit card information on a website if it doesn’t have SSL encryption installed. How can you know if it’s secure? Take a look at the URL—instead of starting with “http://”, it should start with “https://”. Also look for a little lock icon in the URL box. A website with SSL encrypts sensitive information so that only the intended recipient can understand it. In general, go with your gut feeling when shopping online. If a website just doesn’t feel right, find another one that you trust!

4. Use the Internet for Banking

Online banking is just so convenient, it’s no surprise that more than 51% of U.S. adults use it. To ensure that your online accounts are as secure as a bank vault, you’ll want to follow some of the tips above, like creating a strong password and enabling two-step verification. On top of that, you’ll want to be sure to always keep your computer software up-to-date and always log out when you’re done.

Today, using the internet to do business is simply part of doing business! Just be sure to use it smartly and you’ll be good to go!

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Data Breach, Mobile Wallets

Can Apple Pay Put Your Credit Card Security at Risk?

April 13, 2015 Abtek Leave a comment

Recently, the payment industry has been a-buzz about reports that Apple Pay may be suffering from security weaknesses. While Apple Pay offers simplicity and speed for users, it is really worth the risks? Or is all the discussion of potential fraud just a bunch of media hype?

Apple Pay 101

Apple Pay is a mobile payment service that allows consumers to make credit and debit payments directly from their iPhone 6, 6 Plus and the highly anticipated Apple Watch.

Think of it like a digital, mobile wallet.

Apple pay allows users to import their credit card information from their iTunes account into the Passbook application on their device. Once set up, customers can simply wave their phone over a Near Field Communication (NFC) terminal, located in a wide range of retail stores across the country, to make a purchase.

How Secure is the Apple Pay System?

When Apple Pay launched in October 2014, it was touted as being an “easy, secure and private” mobile payment solution. And up until recently, all was going smoothly. So what’s the real deal with all of this talk about fraud and security risks?

Fact: Fraudulent charges are being made through Apple Pay. Some estimates report that upwards of 6% of transactions made via Apple Pay are fraudulent.

However, it’s important for consumers to understand that Apple Pay accounts are not being hacked. The data infrastructure on Apple’s part is up to standards. The problem lies within the provisioning; a process in which banks verify the legitimacy of cards when they’re uploaded to Apple Pay. What’s happening is that criminals are taking stolen credit card information, creating iTunes accounts, using those accounts to provision Apple Pay accounts and then making fraudulent purchases.

At this time, consumers do not need to be overly concerned about the security of their credit card data once it’s uploaded to Apple Pay, but that doesn’t mean they’re not at risk. Consumers should always take extreme caution when sharing their credit card information to ensure that it’s going into the right hands.

Be Prepared! What Merchants Need to Know

The payment landscape is changing rapidly and for merchants, the most critical thing to take away from this discussion is an understanding of the importance of payment processing security.

Even the most diligent merchants experience fraud, but there are a number of ways that businesses can make transactions more secure for their customers. As Apple Pay and other mobile payment technologies become more integrated into the payment industry, more security weaknesses will likely emerge, and alternate solutions will need to be implemented.

During this time of transition, it’s important for you, as a business owner, to stay informed on all of the latest payment technologies and trends, and be sure that you have systems in place to ensure maximum security for your customers’ payment information.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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Tips

8 High-Risk Purchases You’re Probably Making With a Debit Card

March 30, 2015 Abtek Leave a comment

As we’ve become a more cashless society, it’s almost second nature for business owners to take out a debit card whenever they need to make a quick every day purchase. But what are the security risks of choosing to pay this way?

With credit cards, one can simply dispute any fraudulent charges and not pay the bill. But debit cards take the money directly from your checking account. There are many business purchases that can leave your debit card—and by extension, your business account—vulnerable to security attacks. Following are eight of the riskiest purchases you can make with a debit card.

1. Buying online. Any online purchases can leave your business account open to hackers. This is true not only of strictly online companies, such as Amazon—which puts significant effort into their cyber-security, but traditional stores with an online presence as well, such as poorly protected Target and Home Depot.

2. Delayed delivery and merchant disputes. Federal law gives you 48 hours from the time a charge is made to dispute it. But business transactions can sometimes be pending for a significantly longer window of time. Because you may not have physically received the item at your business yet, or it’s damaged when it finally does arrive, too much time will have passed and it becomes much more difficult to ever recoup the loss.

3. Expensive big-ticket items. Many credit card companies offer additional warranties and insurance, as well as added protection against an item not showing up or working incorrectly. Debit cards do not offer this same level of protection, which is necessary when buying expensive electronics or renting a car.

4. Dining out. When you’re at a restaurant for a business lunch, the server may take your debit card out of your line of sight, opening the door for fraudulent activity. Restaurants also assume you’ll leave a tip, so they authorize your card for more than your bill, freezing your funds until that larger amount clears.

5. Outdoor ATMs. Need to withdraw a few smaller bills for your register outside of regular bank hours? Outdoor ATMs are unmonitored most of the time, so it’s easy for someone to add a “skimmer” to the card reader. It looks like a regular card reader, but it’s storing your card data for cyber thieves.

6. Future travel. Similar to delayed delivery, your card may be charged well in advance of your business trip. Hotels will often store card data for months before your actual travel dates, leaving your account vulnerable.

7. Gas stations. This is another location where it’s really easy to add a skimmer to a legitimate card reader. Be careful of how you choose to pay at the pump while on traveling for business.

8. Recurring payments. We’ve all dealt with memberships that charge obnoxious fees for cancelling a service, whether it’s a magazine, organization membership or similar business expense. It’s much easier to dispute a credit card, and doing so won’t impact your checking account balance.

For transactions such as the ones outline above, a credit card may be a much safer bet—it will leave your business account in tact and provide additional security and protection from potential fraud. After all, the last thing you need as a business owner is a giant headache from your checking account being compromised or your funds being frozen.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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EMV® Cards

How Will the EMV Mandate Affect Your Bottom Line? What Businesses Need to Know

March 9, 2015 Abtek Leave a comment

Credit card processing will go through major changes this year–but how will the 2015 EMV Compliance Mandate affect your business? The United States is the world’s final market to become EMV compliant. Our adoption and accessibility to the technology will likely transform all industries reliant upon processing payments via credit cards.

What is EMV Compliance, Anyway?

EMV is an acronym meaning “Europay, MasterCard and Visa.” The “big three” of globally standardized circuit payment cards utilize a chip for payments. These chips are used for ATMs, credit card terminals and digital registers. The EMV Compliance Mandate updates these cards’ internal mechanics and any provider using EMV-reading software will need to comply, too.

The New Liability Shift

The EMV Compliance Mandate isn’t just a software update. Its attached Liability Shift may affect your business’s transaction policies. USAVisa.com contains the shift’s entire workings, and, as per their description:

“When a transaction occurs using chip technology, any liability for counterfeit fraud, though unlikely, would follow current Visa Operating Regulations.”

In other words, this shift will greatly reduce your business’s fraud liability, assuming your software and hardware is up-to-date. If and when fraud occurs, new standards will neutralize losses while protecting you from liability. Within the financing world, such a shift is incredibly significant: Reduced liability and expenses can be re-balanced and shifted to other business areas.

Fewer Fraud-Related Chargebacks

Historically, credit transaction authentication and completion has been tied to fraudulent chargebacks. However, EMV’s updated technology will reduce fraud-related chargebacks due to the following mechanics:

Increased protection against card skimming
Increased protection from magnetic strips
Dynamic authentication possibilities

Reduced fraud chargebacks similarly boost a company’s ability to reallocate resources. While merchant services should always be treated with high security, EMV compliance will greatly enhance a business’s processing and transaction flexibility and security.

Fewer Data Breaches

As stated above, credit card processing will become increasingly stable and secure via EMV compliance. Participating U.S. merchants will be required to maintain full software and hardware upgrades, too, increasing their edge against data breaches.

The mandate promotes immediate liability focus on the party containing “lesser” technology. In short: A consumer using old EMV technology will be recognized as “at fault” in the event of fraud. This same aspect is directly correlated to the mandate’s facilitation of up-to-date vender technology.

So, on average, companies will maintain higher technology than surrounding entities and consumers. This will add further protection, as the superior technology will likely outrun malicious data breaches. The new EMV technology renders extracted information “useless,” as it’s encrypted to fit a digital format—rather than to a readable, magnetic strip.

Staying Aware: Adapting to the Change

Point-of-sale security is still important, and maintaining a healthy workplace promotes sustainability and protection. To ensure your employees and relevant decision makers are up-to-par with new security standards, it’s important to:

Create a relevant business plan before changing to new technology
Immediately migrate to new EMV standards
Train product awareness

New hardware and software changes may take time for adoption, but supporting network connectivity and internal effectiveness will ensure heightened protection. It’ll put your business ahead of the curve, security wise.

Stay updated on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

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EMV® Cards

10 Things You Need to Know About EMV Cards in 2015

December 26, 2014 Abtek Leave a comment

Changes are coming to way we purchase just about everything. After a few years of lagging behind the rest of the world, the U.S. is finally making its way toward EMV cards nationwide. EMV (Europay, Mastercard, Visa) capable cards are a leap into the future from traditional magnetic swipe cards of the past. So what do you need to know about this new economic innovation?

1. EMV Is The Safest Way to Purchase

Most individuals have already moved away from cash in preference of using cards to maintain their accounts and make purchases. However, even our cards are susceptible to fraud and misuse. The reason behind this is because the information contained on the magnetic strip never changes. If a criminal duplicates that strip they have the consumer’s information. EMV cards will have microchips instead. The information on these chips will change with each transaction making them impossible to replicate.

2. EMV Transactions Will Be Slower

Unlike quick swipe cards, EMV cards use a process called “dipping.” The card is dipped into a data portal where you must allow time for the machine to read the card. Because the verification process is more thorough, the process will take a bit longer.

3. Most EMV Cards Will Use PINs

Just like your old debit cards, new EMV cards will also have a PIN number.

4. New Fraud Rules With the Advent of EMV Cards

One of the big controversies associated with card fraud has always been who the blame should fall on when fraud occurs. Starting October 2015, major U.S. card issuers will hold non-compliant EMV parties liable when fraud occurs. So if a merchant has not gotten on board with EMV, and something fraudulent takes place, then the merchant may be held liable.

5. Most Merchant Terminals Will Be EMV Compliant By 2017

The EMV shift will take some time. Although merchants are being encouraged to be compliant by 2015 to avoid fraud liability, automated fuel dispensers will be compliant by 2017.

6. You Can Use EMV Cards With Non-Compliant Merchants

Although the risk of fraud is greater, non- compliant merchants will be able to process EMV cards with their old card machines.

7. EMV Cards Are Great For Traveling

The U.S. is actually one of the last major markets to change over to EMV cards, so if you are traveling outside of the U.S. it is likely that you will have an even easier time using them while traveling abroad.

8. EMV Cards Will Not Solve Online Fraud

Do not get the idea that EMV cards will solve all forms of fraud. Online fraud can still take place within the new system which is why consumers and merchants are encouraged to continue to keep tight reigns on their transactions and security measures.

9. Expect to See A New Card Soon

When the financial institutions that you use become EMV compliant, you will receive a new EMV card or smart card with instructions on how to use and protect it.

10. Merchants Need to Get On Board

In order to avoid the risk of huge fraud liability, merchants do not need to drag their feet on EMV compliance. Updating systems and getting on board with EMV can safeguard small to mid-size businesses from being a part of possible fraud situations.

Stay up to date on payment processing trends by following Abtek on Twitter and Facebook. Sign up to receive our newsletter, too.

Look for Abnormal Behavior

Keep Good Records

Train Your Staff

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1. Choose a Secure Password

2. Keep Your Email from Getting Hacked

3. Shop Safely Online

4. Use the Internet for Banking

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Apple Pay 101

How Secure is the Apple Pay System?

Be Prepared! What Merchants Need to Know

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What is EMV Compliance, Anyway?

The New Liability Shift

Fewer Fraud-Related Chargebacks

Fewer Data Breaches

Staying Aware: Adapting to the Change

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1. EMV Is The Safest Way to Purchase

2. EMV Transactions Will Be Slower

3. Most EMV Cards Will Use PINs

4. New Fraud Rules With the Advent of EMV Cards

5. Most Merchant Terminals Will Be EMV Compliant By 2017

6. You Can Use EMV Cards With Non-Compliant Merchants

7. EMV Cards Are Great For Traveling

8. EMV Cards Will Not Solve Online Fraud

9. Expect to See A New Card Soon

10. Merchants Need to Get On Board

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Credit Card Processing and Merchant Account Solutions