Beware of Supply Scams
Recently, some newly signed merchants have fallen victim to phone scams where businesses impersonate their current credit card processor. These callers claim to be aware of the merchants’ new credit card machines and offer to perform customer upgrades or sell supplies at discounted rates. Unfortunately, these calls often lead to merchants receiving overpriced supplies, resulting in financial losses.
Steps to Protect Your Business
Require Clear Identification
Always ask callers to clearly identify themselves.
Protect Credit Card Information
Never give out credit card numbers over the phone.
Online Information Security
Do not provide prospective employees with access to your online statements or information.
Recognize Suspicious Behavior
Be cautious of nervous or shaky voice patterns.
Authorized Personnel Only
Never allow unauthorized personnel to service your point-of-sale terminals.
Report Suspected Fraud
Report any suspected fraud to a customer service representative only.
Order Supplies Securely
Order supplies exclusively from your current bank processor.
Verify Suspicious Calls
If you are suspicious, ask if you can call the caller back.
10 Warning Signs
Hesitant Caller
Be cautious of callers with shaky voices or delayed responses.
Rush Orders
Stay alert to rushed orders, which are often associated with fraudulent schemes.
Geographic Location
Be aware that the top five states for fraudulent activity are California, Florida, Illinois, New York, and Texas.
Fourth Quarter Activity
Fraudulent activity tends to increase around the holidays, so exercise extra caution during this period.
P.O. Boxes & Mail Receiving Services
Be wary of addresses that only use P.O. boxes or mail receiving services.
Above-Average Transaction Amounts
Pay attention to transactions significantly exceeding your average sale amount.
1-800 Return Phone Numbers
Request direct phone numbers instead of toll-free numbers.
Easily Convertible Purchases
Be cautious when high-value items like electronics, jewelry, or leather goods are ordered.
Multiple Orders in a Short Period
Investigate multiple orders within a short timeframe.
Unusual Transaction Sequences
Watch for purchases that deviate from a customer’s typical buying patterns.
