OPP warn of Card-Not-Present frauds in eastern Ontario

Photo by Sergey Zolkin.

Businesses across eastern Ontario have reported falling victim to Card-Not-Present (CNP) fraud. The Upper Ottawa Valley (UOV) Detachment of the Ontario Provincial Police (OPP) is urging businesses to be mindful of possible fraud when conducting sales by phone or online.

According to a release from the OPP, detachments across eastern Ontario have responded to numerous calls from businesses, including automotive and recreational vehicle dealerships, who fell victim to a Card-Not-Present (CNP) fraud. One business in Pembroke reportedly lost over $10,000. 

“The fraudsters contact a business to place an order for a product by phone, email or website, with plans to make the payment using a stolen payment card and a counterfeit driver’s licence,” OPP said. “The product purchased is sent through a shipping company or to an individual picking up the product using a rented van or trailer (also rented with a stolen payment card). After the order is shipped and charged to the payment card, eventually the real cardholder identifies the fraudulent purchase and disputes the charge. As a result, the business receives a chargeback and is responsible for paying back the amount charged on the stolen card.”

OPP provided the following tips to protect businesses:

  • Prior to shipping merchandise, take steps to verify the information provided by the customer (telephone number, email address, shipping address, etc.)
  • Be sensitive to priority shipments for fraud-prone merchandise, which may indicate a fraudulent transaction.
  • Be aware of orders that occur with a request for urgent shipment, especially if the shipping address does not match the billing address on the credit card provided.
  • Be aware of orders from repeat customers that differ from regular shipping patterns.
  • Contact your processor and ensure security measures are established to prevent and reduce unwanted chargebacks.

Businesses that accept CNP orders can better avoid fraud by using the automated verification tools supported by their acquirer and the payments associations, OPP stated. 

If your business has become a victim of Card-Not-Present fraud, contact your local police service and the Canadian Anti-Fraud Centre toll-free at 1-888-495-8501. 

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