Avoiding Counterfeit Fraud

One of the easiest ways to avoid fraud is to spot counterfeit cards before you process the transaction. <em>Visa</em>® cards have a number of built-in security features designed to help merchants recognize a real card from a counterfeit on

Here are some features to look out for that can help prevent your business from falling victim to card fraud:

Always check the Visa card for security features

While processing a transaction, take the time to look over the Visa card elements and the following security features.

<em>Visa</em> Card front

<em>Visa</em> Card back

If you suspect a card has been altered, or is counterfeit, call your voice authorization center and request a Code 10 authorization, but never do so at the risk of your own personal safety.

Always complete an electronic authorization before you make a Code 10 call. If the transaction is declined, you do not need to request a Code 10 authorization.

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Six warning signs of fraud

In addition to examining the card to verify its authenticity, there are also some warning signs of fraud that you should watch out for. Certain customer behavior could point to card fraud, but it doesn't necessarily indicate criminal activity. You know your customers, so let your instincts steer you in the right direction.

Watch out for customers who:

  • Purchase a large amount of merchandise without regard to size, style, color, or price
  • Do not ask questions on major purchases
  • Try to distract or rush you during the sale
  • Make purchases and leave the store, but then return to make more purchases
  • Make large purchases just after the store's opening, or as the store is closing
  • Refuse free delivery for large items

Skimming is a 'scam'

Skimming is an illegal act that allows criminals to obtain card account information to produce counterfeit cards.

How does skimming work?

Typically, someone in a workplace uses a small device to steal the information contained in a card's magnetic stripe. This information is then put onto a counterfeit card that is used to make fraudulent purchases.

Be on the lookout for skimming activity.

If in your workplace:

  • You see anyone using a device that is not part of your day-to-day activities
  • Anyone offers you money to record account information
  • Anyone asks for customer account information over the phone

Call your merchant processing centre or company security and let them know immediately.

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