Fri. Aug 12th, 2022

According to a new ruling, the Reserve bank of India -RBI has made it mandatory for all banks issuing credit and debit cards to provide additional authentication information over and above what is visible on the card. To prevent fraud and to make online shopping safer, the RBI has made it mandatory, from 1st August onwards, for all online vbv-msc-logotransactions to have increased security via registering each and every card with its respective merchant. This means that every time you make an online transaction you will have to enter this additional password given by the merchant. This is commonly known as VBV – Verified by Visa or MSC – Mastercard SecureCode

I bank with HDFC and I can vouch that they already have certain systems like NetSafe which generates a code which can be used only one time, along with that there is virtual keyboard that enhances the security if you are using a public computer. Fresh CC I am sure other major Indian private sector banks Like ICICI and Kotak would also have such systems in place. This new ruling will add an entirely new dimension to online security and as per the directive issued by the RBI on February 18, also mandates a system of online alerts to the cardholder for all ‘card not present’ transactions that exceed Rs 5, 000. The circular adds that banks would be penalised for non-adherence to the directive under the Payment and Settlement Systems Act There are some distinct behavioral patterns exhibited by the majority of the perpetrators of fraudulent purchases online. In the majority of cases we encounter, the person attempting to make a fraudulent order has stolen someone’s credit card (likely from a restaurant or retail store) or has purchased a list of credit card numbers from an identity theft black market. In cases such as those, the fraud likely has a credit card number and expiration date, but nothing else to verify his identity. In some cases, the fraudulent customer has been thorough enough to get the 3-digit CVV number from the back of the stolen credit card. In either of these situations, figuring out that the customer is using a stolen credit card is a fairly simple process. If he can’t verify the billing address associated with the credit card, chances are you have a fraudulent customer.

Most of the time, fraudulent customers try to keep themselves isolated from the business they’re trying to scam, for obvious reasons. When they sign up for a customer account, they provide a telephone number that doesn’t work. Often we even see bogus area codes used in telephone numbers provided by fraudulent customers. Our online store requires an email address from customers. Because free public email addresses (like those from Yahoo. com, Hotmail. com, or Gmail. com) are difficult to trace back to their owners, most fraudulent customers use one of those kinds of no-hassle email addresses.

In our experience, the most obvious of fraudulent customers naturally seem to be the dumbest. We often receive emails from people who ask whether we accept credit cards for payment and then ask us to send them a list of products we sell. It’s not hard to tell that those emails are fishing for scam opportunities. Other fraudulent customers will ask for multiple quantities of a specific product found on our web site, and they’ll ask whether we accept international credit cards. These emails typically mention that the sender is buying products for some worthy cause, and they’ll use a benign name (such as “Doctor Johnson” or “Pastor Murphy”) that the perpetrator believes will convince the owner of an online store that he’s not being duped. I’m pretty confident that online businesses rarely fall for those tricks, especially since most of the “Doctor Johnsons” we encounter appear to not spell very well and have poor grammar.

There are some fraudulent customers who are smarter and bolder than the typical ones I’ve discussed. We’ve encountered customers using stolen credit cards who use valid phone numbers and email addresses, and who communicate as if they are legitimate. Sometimes we don’t find out until after the order has been delivered that the customer was actually using a stolen credit card. In one particular case, a customer’s billing address didn’t match the address on file with the credit card issuer. A phone call was made to the customer, and he matter-of-factly gave a different billing address. Because of a glitch in our merchant account system, the order was shipped even though the alternate billing address wasn’t the correct one either. The end result was a free set of six hundred dollars worth of football jerseys for a thief in Dallas, Texas. Another fraudulent customer ordered some gym bags and requested that they be sent overnight to Miami, Florida. She wasn’t dissuaded when she was contacted and told that her check had to clear the bank before her order could be shipped. She persisted and mailed a bogus check from an account that didn’t exist.

By admin

Leave a Reply

Your email address will not be published.