Businesses now operate in a connected world. They sell across multiple channels and geographies. But as the number of channels and markets businesses operate in continue to rise, so does the risk of fraud. Fraud perpetrators are becoming more sophisticated. Fraud is increasingly difficult to detect. As a result standard fraud verification tools can prove to be insufficient.
eCommerce Fraud involves the use of stolen or counterfeit payment cards to make direct purchases or cash withdrawals. It also includes the use of stolen card data to buy items over the phone or via the internet. Fraud perpetrators will target retailers that sell goods and services online using stolen credit card details. Online business appeals to those fraud perpetrators, because there is no physical contact with the business or the legitimate cardholder. Businesses should be fully aware of the risks otherwise they are more likely to be targeted.
A substantial increase in your telephone bill is an indication your company could be the victim of Private Automatic Branch Exchange (PABX) fraud. Detailed billing will assist in identifying any potential unauthorised calls, usually International calls but they can also be National telephone calls. Another indicator is where customers trying to dial, in or employees trying to dial out, find that the lines are always busy. Private Automatic Branch Exchange (PABX) fraud is defined as the unauthorized use of a company’s phone system. It is a theft of long-distance services by a) un unrelated third party, b) a staff member of a long-distance carrier, local telecom or vendor, or c) the user’s staff member.
Invoice Redirection fraud (or Mandate Fraud) occurs when your company receives a request to change a direct debit, standing order or bank transfer mandate, from someone purporting to be from another organisation to which regular payments are made, for example a business supplier. It generally takes place when a criminal impersonates your company and deceives the customer into making payment of the company’s genuine invoices to a fraudulent third party account instead.