Wednesday, April 20, 2011

Beware of Credit Card Scams

We've had our share of attempted credit card scams over the years.  The most recent hit our shop just yesterday.

A prospect contact us by e-mail wanting to buy Barcelona cushions.  We offered a quote and he accepted.  Now the scam:  

Buy an expensive product that requires overseas shipping. Buyer claims to be located in the USA, while the ship-to address is in Europe. Buyer asks seller (us) to contact his designated shipping company by e-mail to get a quote. The quote comes in ridiculously high.  Buyer requires the seller to use the buyer's designated shipping company because he "trusts them."  The total amount including shipping is almost $7,000 of which more than $2,500 is shipping.   Buyer wants to pay the total amount, including shipping costs, up front with a credit card.  Buyer calls with credit card number.  With buyer on the phone, we run the card and it goes through as authorized. The shipping company then sends an e-mail to me claiming their credit card processing system is down and to send a money gram or bank wire transfer to a bank in Ghana for the shipping fee. Bingo.... Fraud!!!  We void the transaction and call our credit card processing company.  They determine it is a valid card, valid billing address, but the name on the card is not correct.  

Because we voided the transaction before it was "batched" (Meaning the money was actually put into our account.) we weren't charged the processing fee.  Further research determined the shipping company is bogus.  Buyer IS the fraudulent shipping co. 

I just received another e-mail asking why I haven't sent the wire transfer. I am stringing them along at the moment.   

Amazing lengths these knuckleheads will go through.

Copyright  2011, Kevin Gillan

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