RE: UKNM: Re: Credit Card Fraud

[Robin Edwards]

Did anyone see that Crime Stoppers program the other week? IT was all about 

credit card fraud. Amazingly the "team" managed to buy loads of stuff over 

the counter using "stopped" credit cards, and one even apparently signed as 

Richard Branson when buying something from Virgin!


They then turned to the online stores and apparently managed to buy books 

and flights using someone else's credit card details (one of the team's, 

but still making the point that it could have been one of the many that 

they picked up from discarded receipts in bins and gutters.) from the major 

name online retailers. The problem was shown to be the lack of name and 

address verification in the UK (not the fault of the merchants, btw) 

because in the UK we only check that (A) the number is valid, (B) it is not 

listed as stolen, (C) the expiry date is valid and (D) there is sufficient 

credit limit on the card. This goes for merchants who use a CC machine and 

type in the details, and those that use online CC processing agents.


I did read of one system that apparently uses a special technique to give 

merchants a scoring for a potential transaction, based on the information 

presented (e.g. name and address as well as CC details) then leaving the 

merchant to choose whether or not to proceed with the transaction. The fact 

that the company said it couldn't explain how it worked because that was 

their USP put a big question mark over it for me though.


Robin


--

Robin Edwards

Clockworx Design Limited

T: +44 1543 252370           F: +44 1543 420761

E:

robinclockworx [dot] co [dot] uk

     W: http://www.clockworx.co.uk/


On Saturday, November 13, 1999 9:38 AM, Duncan Clubb 

[SMTP:

duncan [dot] clubboffworld [dot] net

] wrote:

> James Downes wrote:

>

> > Am I wrong in thinking that the problem with credit card fraud on the

> > net in 1999 is the volume of chargebacks?

> >

> > The oft missed risk, particularly for e-commerce sites is that so many

> > of the credit cards 'presented' don't actually exist. Our experience is

> > that up to 50% of cards presented come into this category, something

> > that we try to drill into the heads of our e-commerce clients who 

fulfil

> > on-line.

>

> In my experience, one of the first things that an online CC service does 

is

> check the card details for validity.  The solutions that I have 

previously

> implemented would not even attempt to confirm a card that could not pass

> this simple test.  Are you referring to sites that collect CC details and

> then process them offline?

>

> Duncan



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