News

August 24, 2010

Small businesses warned to guard against credit card fraud

Small firms must be vigilant when taking credit card payments online, the Forum of Private Business (FPB) has warned.

Following a doubling of calls to its helpline about credit card fraud over the last month, the FPB said businesses that take payments online must learn how fraudulent transactions take place and take precautions to prevent them. Fraudsters use credit card information obtained illegally to order products or services under false names.

“Minimising credit card fraud takes time, but it is important to get an e-commerce payment processing service that is secure, using supplementary security modules provided by the major credit card companies,” said the FPB’s adviser on merchant services, Richard Bradley of Accept Cards Ltd.

“These two features require an additional password to be entered along with the credit card details of the cardholder,” he added. “Fraudsters will usually have the name, address and credit card number only, so using payment gateways that support these are an effective way of minimising risk.”

Free security advice website Get Safe Online’s managing director, Tony Neate, said: “Card-not-present fraud is increasing all the time, because criminals can’t use credit cards in person because of PIN numbers any more, and more firms are trading online.”

He added that businesses that fail to guard against fraud risk breaching the Data Protection Act, with the possibility of legal proceedings being taken against them if information is leaked, not to mention losing loyal customers.

“Firms need to make sure they have very efficient, robust back-end systems that they’ve had audited by a third-party company that specialises in this area, such as a credit card company,” said Neate.

“Businesses should ensure they are aware of what the latest problems are, and seek professional advice,” he added. “It doesn’t have to be complex or costly.”

• For free information about online payment security, visit the Get Safe Online website