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Possible fraud / stolen card?

Discussion in 'E-Commerce' started by BBSolution, Aug 10, 2015.

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    BBSolution

    BBSolution Freshman

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    Hello

    We launched an ecommerce store a few months ago and have had no issues with orders thus far.

    Yesterday however, we received 4 very large orders, all with a shipping address that was near Manchester.

    The orders are about 10 x our usual average order size, and included our most expensive products. They all chose next day delivery, too which costs extra.

    Our fear is these orders have been made with stolen credit cards. They've opted for next day delivery to make sure the items are dispatched before we're notified that the cards are stolen.

    If this is the case, would we be liable to refund the full amount to the card, and likely lose the goods we've sent out? Would paypal seller protection cover us?

    Thanks in advance guys!
     
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    Maevla

    Maevla Administrator Staff Member

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    Yes is the answer - you could well be liable for a chargeback.

    If it was my business I wouldn't rely on Paypal seller protection, but you could log a call with them and ask the question.

    Does your payment gateway have a login where you can do additional checks to ensure that the cards aren't stolen?
    Have you checked to make sure your security settings are set to check these things anyway?

    Do you have a phone number (landline) that you can call to check the buyer out? Ask for additional proof of who they are such as a passport scan or a driving license scan. Don't be afraid to ask, your customer will only be put out if they are trying to rip you off.
     
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    BigP

    BigP Applicant

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    What I don't understand about these fraud schemes is how they can get away with it, when they've just given their home address? Obviously they need to be there to sign for the delivery, so it must be their own address? It's clearly a residential address that has been used.
     
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    sarastones

    sarastones Freshman

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    Definitely make additional security checks - as above. Remember, if you supply, no matter what it says on your payment gateway, you will be liable. Personally I would refund them all and cancel the orders. This sounds too dodgy.

    Sorry! :(
     
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    BBSolution

    BBSolution Freshman

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    The billing address does not match, and in fact we received notification that there were 3 different billing addresses attempted and failed before they were able to place the order.

    Clearly there is something not right, but we will try to contact them. I'm not sue RE the payment gateway as a friend of a friend helped me to set it up but it is definitely something I will check!

    The thing is though shouldn't we be covered by Paypal under their seller protection? The order will of course be sent with signed for delivery, which means that Paypal should cover us when they sign for it?
     
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    Silverisametal

    Silverisametal Lab Tech Premium Member

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    I'd get it checked out just to be safe, if it is.. happy days!! :D
     
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    fairielug

    fairielug I do believe in fairies I do! I do!

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    This is classic fraud, I am afraid. I would waste no time on it.

    I understand - I have been there - that you want so much for the orders to turn out to be the real deal, but from what you say they are not. It is not worth pursuing. Cancel and refund the cards before the real card owners notice the charges.

    To answer your question @BigP a lot of the time the fraudster will just wait around outside the house and when the courier arrives pretend to be just leaving/arriving so the courier will hand them the parcels on the street!
     
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    Maevla

    Maevla Administrator Staff Member

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    I agree with Fairie - don't even ship the goods. They won't contact you to see where they are.
     
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    Paul Norman

    Paul Norman Businessman

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    If in doubt, don't ship it out. You, the retailer, bear ALL the risk, especially if it is Ebay.
     
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    BarneyBlue23

    BarneyBlue23 Trainee Lab Tech

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    echo that - if in doubt don't ship it out - good advice
     
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    cjd

    cjd Junior Lab Tech

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    It's virtually certain to be fraud. But you can always find out for sure by asking for payment via bank transfer - they will refuse.
     
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    Toni Rose

    Toni Rose Graduate

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    I agree with the above - any doubt at all protect yourself and your business and cancel the order. I imagine its frustrating to turn away an order that size but it will only come back to bite you somewhere down the line!
     
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    BBSolution

    BBSolution Freshman

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    Thanks to everybody that has given me advice I didn't expect such a fantastic response as a new member!! I haven't accepted the order as of yet and I have emailed the 'customer' asking for some photo ID so I can verify the purchase or alternatively payment via direct bank transfer, I still haven't heard anything so I'm not holding my breath!
     
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    Nublue

    Nublue Freshman

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    It could be someone trying to fraudulently obtain goods but it could also be someone using your store to test if the card details they've obtained have been flagged as stolen yet. If you accepted the order, they'd use the card(s) elsewhere.
     
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    cjd

    cjd Junior Lab Tech

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    You can't rely on photo ID at all - it's easily faked these days and any half decent fraudster will have a go at it. A real customer will have no problem paying by bank transfer. Once that's in your bank, it's safe to send the goods. Once you know he's real, it's safe to use credit cards thereafter.

    But you'll never here from him again.
     
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    BBSolution

    BBSolution Freshman

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    Thanks CJD still haven't heard anything as of yet so I'm assuming as they paid specifically for next day as if they were in a rush that it was indeed a stolen credit card - oh well you win some you lose some! :punch:
     

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