Fraud prevention

MOSCMOSC Posts: 2Member
While I see Lightspeed has an extremely basic set of bullet points about preventing fraud here (, it really only barely skims the surface.

In case anyone else needs a little more help, here are some additional points I've found along the way: used to have a nice article about preventing fraud but they've taken it down.  Here are a couple of useful tips that were in it:

1) Bank BIN lookup (first 4 digits of the card)
  • You can ask your card processor for the first 4 digits of the card used in a fraud; they identify the issuing bank.  When you call the card-issuing bank, have your merchant number, your phone number, the customer's full name, address, and phone number ready. You can ask the card-issuing bank to make a courtesy call to your customer to verify the charge. (CIBC refused to do this during our Cayan fiasco; they didn't seem to care the cards were being used for fraud.)
2) If you're based in the US you can file a complaint, here:
3) Establish a "holdover policy" for large orders. 
  • The dollar amount of the large order can vary depending if the order is domestic or international. Most credit card thefts are reported within 24 hours. Even after a phony card number is discovered by a retailer, it can take up to 24 hours for that number to be included in the databases that card processors use. (This did not help in a case where we had fake customers using real, stolen credit cards.  When I tracked down the customers via their name and address they looked at their accounts and told me there were numerous fraudulent charges, some of which were 14 days previous.)
Finally, the best (but not foolproof) method I've found for verifying a suspicious, large-value purchase is to use Google and try to track down the customers by name and address (In one case I found them by a family car dealership, another one by an obituary).  In both of those cases the credit cards used were stolen.  In another case I was able to verify a high-ticket purchase as genuine.

There is a user-curated list of fraudulent customers, here, that you can search:

And we've started passing the shipper's insurance surcharge through to the customers and requiring a signature on high-value purchases.  So far this seems to be helping.
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