Blog

Category: Fraud Protection Tips

December 19, 2018

If Marriott Can Have A Data Breach, So Can You

We continue to warn our merchants that data breaches occur every single day. Most are never reported by the media because they happen to small merchants with weak protection, the absence of firewalls, and protocols meant to protect from a breach. Large companies like Marriott Hotels have experienced IT departments with high-level security measures in place. Yet in September 2018 they found they had been hacked. While the specific incident was limited to their Starwood brand of hotels, a subsidiary, it shows that every merchant is vulnerable and susceptible. If a breach occurs, the merchant is responsible for the damage....Read more


December 12, 2018

Accepting Venmo in Your Business

There is no doubt that Venmo has become a popular way of moving money from one bank account to another. It can be particularly handy when one friend pays for something such as concert or movie tickets or a cab ride and you need to pay your share. People who don’t have a credit card but have money in the bank. Venmo is owned by PayPal, although PayPal didn’t launch the app: they acquired it in 2014. Originally Venmo could not be used to pay merchants; it was simply a friend-to-friend app. In 2016 Venmo began working with some merchants,...Read more


December 5, 2018

The Secret Service Cracks Down on Credit Card Skimmers

When you think about the Secret Service of the United States, you probably think of them as the security protectors of our president and other elected officials. You probably don’t associate them with being a defender of credit card fraud. Yet that is one of their additional functions. Specifically, the United States Secret Service went into high gear over the Thanksgiving weekend to target a specific kind of credit card thief: the skimmer. A skimmer is a device that is placed into legitimate credit card readers to capture the data of the card being used for a legitimate payment. The...Read more


November 29, 2018

Merchant Fights Fraud – Delivers a Payback

It was back in February or March when Mike Weisberg, owner of Greater Binghamton Limousine Service became a victim of fraud. The thieves would come calling again and again. The third time was the charm and resulted in an immediate arrest. In the first fraudulent encounter, Weisberg received a call asking for immediate transportation to Buffalo, a 400-mile round trip. A trip that cost $875. Weisberg did everything he was supposed to do. He obtained the billing address, the zip code and the three-digit security code. Everything went as planned and the crook even complimented the chauffeur on a job...Read more


April 4, 2018

Is Your Credit Card Processor Honest?

credit card

Accepting credit cards in your business is a requirement in today’s cashless society. In fact, we are seeing an uptick in the use of contactless payment methods such as Apple Pay, Samsung Pay and even Fitbit Pay. With these payments, a simple tap on the keypad of your phone or fitness device and the payment is done. While this is convenient for your customers, the near elimination of cash and check payments means the cost of processing these transactions continues to rise. Like accepting credit cards, the cost of processing credit cards is also a requirement for merchants. This is why, now more...Read more


January 24, 2018

American Express SafeKey – An Anti-Fraud Tool

amex safekey logo

All of the major card brands offer advanced anti-fraud tools for merchants who are willing to implement them.  American Express offers a tool called SafeKey. SafeKey provides an addition layer of protection for online transactions made with an American Express card. What Exactly is SafeKey? SafeKey is American Express’ version of a 3D Secure authentication tool that protects both the Amex cardholder and the merchant to avoid unauthorized Amex transactions performed online.  Cardholders are automatically enrolled in the Amex SafeKey program with no additional action required on their part. When making an online purchase with a participating merchant, the cardholder...Read more


October 4, 2017

A Major Data Breach – Possibly 5 Million Card Compromised at Sonic Drive-In

card

We have shared it before and now we will share it again.  Data Breach Protection policies are super cheap and well worth their investment.  Less than fifty percent of all U.S. merchants have invested in a Data Breach Policy.  In October of 2015, the liability for data breaches was shifted from banks to merchants.  Chosen Payments offers a Data Protection Policy for about $10 a month. Most recently Sonic Drive-In has been breached — and possibly in a pretty big way.  Sonic, at present, is at 3,600 locations across 45 U.S. states — and while it has acknowledged the breach itself,...Read more


August 9, 2017

How You Hold Your Mouse Might Prevent Online Fraud

mouse

As fast as new security tools are implemented to combat online credit card fraud, criminals devise new ways to beat the system or find new weak spots in how online credit card processing works.  Chosen Payments constantly monitors solutions that keep our merchants safe from experiencing a fraud loss. Many of our clients such as home housewares, limo operators, uniform retailers and trade associations conduct the majority of their business through online transactions so improvements in fraud disruption are an important consideration. If we go back in time to the early 90’s, we were pretty easily duped by phishing emails...Read more


July 19, 2017

Managing Mobile Fraud

mobile fraud

Over 2 billion smartphone and tablet users are expected to make at least one mobile transaction during 2017. Mobile purchases are dominated by young shoppers, mobile commerce (aka mCommerce), already accounts for over 50% of US online transactions. It is likely to become the most preferred shopping method of the future. While mobile sales present great opportunity, merchants still have some way to go before they can maximize revenues and effectively prevent fraud losses from mobile sales. According to the 2017 Global Fraud Survey, over 90% of eCommerce merchants use the same tools to manage fraud across both web and...Read more


July 13, 2017

In The Fraud War – The Chip Trumps The Stripe

chip card technology

What is it about the microchip that makes credit and debit cards so much more secure than those that contain only the magnetic strip? It’s In The Numbers Magnetic stripes contain information that doesn’t never changes.  It includes the account number, the expiration date, the 3-digit security code and even your name.  That stored information makes it relatively easy for a thief to use a cheap machine known as a skimmer to scan and store the card information from the magnetic stripe.  Skimmers can be placed inside ATM machines or gas pumps and retrieved after you leave.  Even your PIN...Read more