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Recent Fraud Scam Involving Wiring of Funds
March 27, 2012 - 13:07:24

Posted by:
Becky Tjugum

By Becky


Recent Fraud Scam Involving Wiring of Funds
There have been recent attempts by fraudsters to trick merchants into wiring funds. 
How it works: The fraudster commonly initiates communication via email and attempts to place a large order, or several orders, using more than one credit card. The credit cards numbers are often the same except for the last few digits. The fraudster then tricks the merchant into wiring funds to prepay the freight company for shipping, insurance, etc. 
The Result: The credit cards used for the orders are all stolen. As the physical card was not present for the transactions, there is little the merchant can do to fight chargebacks once the legitimate cardholders realize that they have fraud charges on their credit cards and dispute the transactions. If the merchant shipped the product, they will be out the product and payment. If funds were wired, the wired funds will also be a loss.
Red Flags:
Orders that arrive via email
Larger than normal orders
Use of multiple credit cards
Credit card numbers seem sequential (begin with same digits)
Customer asks merchant to wire funds (regardless of reason)
Shipping address does not match billing address on credit card (AVS)
Overseas orders
Customer reinitiating contact to confirm amounts were approved on credit cards
Customer request to use a specific freight company
If you have been the victim of one of these scams, please contact Wind River Financial Risk Management (800)704-7253.




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