Fraud Protection for Businesses

Criminals using fraudulent checks and credit cards are ripping off businesses every day. With so many occurrences, it seems as if it would be hard to spot one of these criminals in action, but it is not.

Employees who are properly trained know how to spot a phony credit card simply by looking at the card. There will often be subtle differences in the appearance of the numbers. Altered characters, such as an "8" turned into a "0", and completely filed off characters are just a few things to look for. Oftentimes, the characters will have been melted off. Both melting and filing will leave behind faint imprints of the original characters.

The signature strip on the back of the card can also signal a fraud. Some criminals use white-out to cover the original signature and then sign their version of the card-owner's name in the now-blank space. At times the signature will remain unchanged, as the criminal is betting on the salesclerk not verifying the signature. If there is any doubt on the authenticity of the signature, call the transaction in for approval.

It is also important to be aware of shopper behavior. If a shopper is acting suspiciously, purchasing items that could easily be resold for cash, or possessing only one credit card and one form of ID, it is wise to be on your guard. Make a mental note of the shopper's appearance, any companions and vehicle information and the ID presented contact your local police department.

In most cases, you can detect a bad check before you accept it as payment. Some signaling alterations include altered writing, erasures, water spots, color or background alterations, glossy type, and the absence of perforated edges. It is also wise to beware of post-dated checks or those for new accounts, which are generally numbered below 500. Never accept a check if the signature, imprinted name and ID do not match.

Another form of fraudulent payment to be aware of is the passing of counterfeit bills. The easiest way to detect counterfeit bills is with an inexpensive counterfeit detector pen, but there are more expensive options available also.