Tips on how to spot fraudulent consumer behaviour

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We would advise that full payment is never taken by phone on a credit card, as this is the most common method of fraudulent buy.

Author: Dennis Chapman
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Reading time: 2 minutes

This article is 9 years old.

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We have numerous enquiries regarding traders that have been the unfortunate victims of fraud. The most common form being that goods are purchased on a stolen credit card before the card has been reported as stolen. As such the goods are removed from the dealer and often become untraceable before the fraud is discovered. This leaves dealers in an unfortunate situation as they will be made to repay the full amount back to the credit card company, but be without the goods to resell.

From experience we have collated a few tips to be wary of which are the usual warning signs:

  • Consumer phones and without having seen the goods wishes to pay the full amount over the phone by credit card.
  • Consumer pays for goods over the phone before coming to collect them in person, or alternatively sends someone else to collect them.
  • Consumers being keen to take a vehicle away as soon as they have paid for it, regardless of the condition of the vehicle.
  • Names on Credit Cards differing to the name of the consumer.
  • Delivery addresses suddenly being changed.
  • Consumers purchasing a number of goods at once without viewing them.

Whilst these sales may seem very attractive at slower points in the year, these often end up costing dealers vast sums of money that they hold little or no chance of reclaiming. Dealers must stop and think before rushing into sales of this nature.

We would advise that full payment is never taken by phone on a credit card, as this is the most common method of fraudulent buy. Often it is easier, even if they are a keen buyer, to ask for a deposit only over the phone with full payment having to be made in person. This may sometimes loss you the sale.  However in the long run it is the more financially sensible option.

Dennis Chapman

In remembrance of Dennis Chapman 1951 -2015

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