Royal Canal Financial Control Services

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Retails Scams – Customers

Pick n Mix Scam

8th October 2013

This scam we like to call Pick N Mix. After scanning the products at the tills, the customer asks for another product behind the counter, such as lotto tickets. While the retail assistant’s back is turned the customer includes extra items on the counter, such as nearby confectionery.

This is a low value loss which adds up and reduces your bottom line.

• Policy of placing all scanned products into grocery bag before going to select additional items.
• Where grocery bag is not used, staff should be trained to count items before finalising the transaction. This should tally with the product count on the till.
• CCTV over till area.

Credit Card Terminal Error Scam – July 2012

12th July 2012

A scam similar to the tactics of the famous caller claiming there is a virus on your computer which they will help you sort if you give them access to your PC, such callers are also targeting retailers.

The scam artist will contact the store claiming they are a system engineer and that there is a problem with the terminal, which will disrupt service if not immediately rectified. The caller requests the retailer to key in a ‘dummy’ credit card number and process refunds to this card. When the process is finished the retailer is told everything is sorted and to dispose of the receipts.

Unfortunately the card is real, and the retailer becomes liable for the amount refunded especially if they have no receipt or card details.

Stolen Credit Card – Don’t be left with the liability

22nd October 2011

There have been a number of incidences recently reported to us of retailers feeling the pinch when the credit card company reversed credit card transactions that were put through their terminal.

This arises out of queries raised by the owner of the credit card and unless the retailer can demonstrate that it was a valid sale, then the credit card company is entitled to reverse the transaction on behalf of the cardholder. These reversals are known as chargebacks. Valid forms of evidence are signed credit card receipts from the customer, or a valid chip and pin transaction.

The fact that the credit card company processed the transaction does not in itself restrict the liability of the retailer. Where the retailer has not retained evidence of signature for non-chip-and-pin cards, or the signature does not match that of the card, this is not a valid credit card transaction. While human error can cause a loss to the retailer where this procedure is not carried out, it also leaves an opportunity for customer fraud.

Where a non chip-and-pin credit card has been stolen, the thief will attempt to use the card in a store where they feel it is unlikely they will be caught out. They don’t need a code to authorise the transaction, and simply sign for the sale. We would advise all retailers to be vilgilant to this issue.

Common signs to look out for:
• Unknown customer paying by non-chip and pin, spending little time shopping but managing to purchase a large amount.
• Unknown customer returning to repeat the act when the first attempt is successful.
• Unknown customer using a credit card to buy electronic money which is difficult to trace, e.g. money transfer, temporary credit cards.