Card-Not-Present fraud stings Eastern Ontario businesses


Businesses across the Ottawa Valley have been reporting an increased number of fraud when conducting sales. The Upper Ottawa Valley detachment of the Ontario Provincial Police is urging businesses to be mindful of possible fraud, especially when selling products by phone or online.

OPP has reported numerous calls across eastern Ontario from businesses, including automotive and vehicle dealerships, who have fallen victim to the surge in frauds. The primary method of conducting this scheme involves Card-Not-Present sales. The offenders contact a business and place an order for a product by phone, email, or website. The goal is, to use a stolen payment card and a counterfeit driver's license to complete the purchase. After the order is shipped or picked up, the payment gets charged to the card, eventually notifying the real cardholder. However, once this is identified as a fraudulent purchase, the business receives a chargeback and is responsible for paying back the amount charged to the owner of the stolen card.

OPP has also offered tips to better protect your business:

- Prior to shipping merchandise, take steps to verify the information provided by the customer (telephone number, email address, shipping address, etc).
- Be sensitive to priority shipments for fraud-prone merchandise, which may indicate a fraudulent transaction.
- Be aware of orders that occur with a request for urgent shipment, especially if the shipping address does not match the billing address on the credit card provided.
- Be aware of orders from repeat customers that differ from regular shipping patterns.
- Contact your processor and ensure security measures are established to prevent and reduce unwanted chargebacks.

If your business has become a victim of Card-Not-Present fraud, OPP asks you to contact your local police service and the Canadian Anti-Fraud Centre or toll-free at 1-888-495-8501. 

With files fro CFRA's Connor Ray