Moto fraud red flags

If you are paying for a good or service online or over the phone it pays to be cautious. ‘Card-not-present‘ transactions are defined as a payment “where the cardholder does not or cannot physically present the card for a merchant’s visual examination at the time that an order is given and payment effected”.

It is a common route for credit card fraud, due to merchants being unable to verify that the actual cardholder is authorising the purchase.

MOTO (Mail Order / Telephone Order) is a form of ‘card-not-present’ transaction where services are paid for and then delivered via the internet, telephone or mail. With online spending increasing year on year, it is essential that you are aware of the potential dangers and are able to spot any potential “red flags”.

The below list can help you minimise your risk.

What to watch out for

  1. Unusually large orders or orders for multiple quantities of the same item
  2. Several orders received within a short space of time, often in increasing value
  3. Orders using multiple credit cards, especially where the first 12 digits of the card are the same and only the last four are different
  4. Orders where the card declines and a second card is immediately offered. Or orders where the cardholder asks for reduced values to be processed after an initial decline
  5. Orders requesting payment be made to a third party for “freight” or other services
  6. Orders requiring ‘urgent’ shipping or delivery to a Post Office box or third party
  7. Overseas orders especially those from countries that are uncommon or where goods could easily be purchased locally. Orders from Nigeria, Ghana, Indonesia and Singapore usually pose the highest risk
  8. Orders from Internet addresses using free e-mail addresses, (e.g. Yahoo, Hotmail) or where the only contact number provided is a mobile phone
  9. Any requests for funds to be charged to the card then monies to be sent to them through Western Union or another money transfer service
  10. Orders from someone who is not the owner of the card
  11. Orders from people claiming that they can’t be contacted “directly” because they are in a hospital, deaf, in a high-security sector of the armed services etc.

Tips to minimise the risk of fraudulent transactions and charge-backs

  1. Request a photocopy of both the back and front of the credit card and cardholder ID to ensure that the details match – this is an important step to validate your card holder
  2. Ensure the billing address and delivery address are consistent
  3. Above all, determine whether any of the above indicators are present and exercise caution

Live eftpos does not in any way indemnify a merchant’s transactions. The responsibility for all transactions processed rests entirely with the merchant who has chosen to transact with their card holder.

If you need support with MOTO transactions you can email us or call us on 1300 780 788.

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Sam Edmond

Sam Edmond is Digital Marketing Director for Live group. His digital marketing experience includes roles in Auckland, London, and Sydney. Sam is a Kiwi and supports Arsenal F.C.