Merchant Account Security Tips - Understanding Types of Credit Card Fraud

 

When you have a high risk merchant account, you have to be very careful about the transactions that you engage in. Making sure that you utilize all the security measures and features that you are given is critical to the safety and success of your business or website. Internet fraud is far too common, and there are many unique ways that scam artists will take advantage of the internet to take other people’s money. In order to protect your high risk merchant account, and more importantly your customers, you have to be prepared.

Here is a list of the different types of internet credit card and debit card fraud for you to be aware of:

-Skimming: Skimming is a process that involves taking information from the smart chip or magnetic strip from the card that is used, and then duplicating the information and using it online to make fraudulent purchases. Skimming happens in online businesses and physical operations alike. In fact, many con artists have been known to put skimming equipment into an ATM and steal card information without anyone even realizing that anything is amiss.

-Fake merchant sites and website cloning: The internet is very anonymous, which makes it easy for a professional scam artist to set up a fake website and pretend to be a legitimate merchant. Then, they take credit card information from shoppers and use it for their own personal gain.

-Credit card generators: There is very high-tech software that is available online that scam artists use to generate legitimate credit card numbers and expiration dates. This is a relatively new form of credit card fraud, and is becoming quite popular among con artists.

-Triangulation: Again, the scammer will set up a fake website that appears to be legitimate. Over time, they will get credit card information from customers who come to their ‘store’. Then, they will use that information to take people’s money, all the while never delivering the ‘products’ that were purchased by the consumer.

-Anonymous hacking: In this type of fraud, card numbers are randomly taken by hackers and used anonymously online to make purchases and withdrawal cash through cash advances. They can get these numbers in many different ways, which is why the security of your site is critical.

These are the five most common and best known types of credit card fraud. As a high risk merchant, it is your job to make sure that people are protected when they shop with your company. After all, what could be worse than increasing your high risk status because of a fraud incident that could have been prevented? When you are choosing a merchant account provider or credit card processing service, you need to check out their security features to ensure that they are going to help you become the most secure and protected business that you can be.

High Risk Processor specializes in High Risk Merchant Accounts, High Volume Merchant Accounts and Offshore Merchant Accounts. High Risk Merchant Accounts include such industries as mail order, telephone orders, adult entertainment industry, direct marketing industry, dating, online dating and escort services, outcall services, travel, telecom, timeshares industry, herbal supplements, diet companies, subscription services, membership services and clubs, ticket sales, MLM merchant accounts, multi-level marketing businesses, bail bonds, pawn shops, water filtration systems merchants, collection agencies, auto rental companies, rare coin and collectible shops, computers, custom design products, software sales and service, detective services, door to door sales, massage parlors, gun shops, hair restoration services, cosmetic surgery, high-end ticket sales, high volume merchant accounts, home based and telecommuting businesses, fortune tellers, infomercial merchant accounts, insurance products, investment products, custom jewelry sales, multi level marketing, MLM organizations, phone sales, internet businesses, seminars, educational institutions, sports collectibles, used auto sales, water purifier sales, weight loss centers, vitamin and herbal supplement stores, international merchants, companies facing high chargebacks, etc.  
For additional information about this article or about obtaining High Risk Merchant Accounts, please call 702-454-0760 or email info@highriskprocessor.com.