Clothing Scam (updated 25/06/2010)

Fraudsters are targeting businesses who sell clothing. Orders are being placed for goods to be sent to Singapore, Indonesia and Hong Kong. These orders are generally placed online and might not stand out due to the lower dollar value of the goods i.e. under NZ$500

Baby Products Scam (updated 25/06/2010)

Fraudsters are targeting businesses who sell baby products. Orders are being placed for goods to be sent to Singapore, Indonesia and Hong Kong. These orders are generally placed online and might not stand out due to the lower dollar value of the goods i.e. under NZ$500

Counterfeit Credit Cards (updated 25/06/2010)

There has been a noticable increase in the amount of counterfeit card fraud activity, particularly in the Auckland area. These fraudsters are predominately targeting merchants who sell electronics and jewellery.

This is an extremely well organised counterfeit ring and it is therefore difficult to detect fraudulent transactions. However, we do suggest you be extra vigilant when processing any transactions on overseas issued cards. Should your business be targeted and a chargeback occurs, we also remind you that you must be able to provide a receipt to us if requested confirming the transaction or your business could be liable for the value of the chargeback.

If you are suspicious of a cardholder, you can call the Credit Card Authorisation Centre and select the suspicious card option. Ask for a "code 10" authorisation and follow the operator's instructions. Please note, we can only advise you whether or not the card has been reported lost or stolen. If requested, the Credit Card Authorisation Centre can also match the bin number to the issuing bank.

We have found that for this counterfeit ring the issuing bank does not always match what is printed on the credit card. By supplying the first 6 digits of the credit card you can ask if the issuing bank records match what is printed on the credit card to determine if it is fraudulent.

What is in your rubbish? (updated 27/02/2010)

There has been a couple of cases recently where credit card numbers have been obtained from rubbish bins outside retail stores and used to commit fraud. The card numbers are not on eftpos receipts but usually hand written on mail and telephone order vouchers and other similar documents. Please take extra care to ensure any credit card numbers recorded on vouchers are shredded prior to them being discarded.

Tiles Shipping Scam (updated 19/01/2010)

Fraudsters are targeting businesses who sell tiles. This is a variation of an earlier scam (Aug 2009). The orders are for a large quantity of tiles to be sent to South Africa. As this is a shipping scam the merchant is asked to contact a shipping company and overcharge the credit cards by the amount of the shipping and send the cash via Western Union.

Tour Bus Scam (updated 19/01/2010)

Fraudsters have been contacting Tour Buses/Travel Agents to arrange for a tour party to visit New Zealand. The fraudsters ask the merchant to overcharge the credit cards and send money via Western Union to a "logistics agent" to pay for the flights to New Zealand.

Card Skimming Fraud (updated 30-11-09)

Police fraud specialists in New Zealand and Australia are investigating scams in which they believe terminals and unattended parking machines have been tampered with resulting in credit card account data being compromised.

The PCI Security Council has put the below merchant support information on their website to address the current increase in terminal skimming taking place in the global market.

https://www.pcisecuritystandards.org/education/info_sup.shtml

Conference Booking - Refund Scam (updated 29/09/2009)

Fraudsters from Africa have been contacting conference organisers to register for conferences in New Zealand. The fraudsters are then cancelling their registrations at a later date and requesting the refunds be sent to an overseas bank account or via Western Union.

To avoid being caught out by this type of fraud, merchants are advised to only refund money on to the card the transaction was processed from. If the amount to refund is above the refund limit, merchants are advised to contact EFTPOS New Zealand on 0800 338 767, option 3 to arrange for the transaction to be reversed.

Furniture Scam (updated 17/09/09)

Fraudsters are calling merchants in the furniture industry (particularly in Auckland) to purchase furniture over the phone using stolen credit cards. The fraudsters are then collecting the goods (sofas, beds etc) the same day. Please be wary of any customers wanting to purchase furniture over the phone using credit cards and then asking to collect the goods later that day. To help protect yourself from this type of fraud ask customers to pay instore when they collect the furniture and do the normal credit card checks outlined in your Merchant Operating Guide.

Wedding Scam (updated 18/08/2009)

Fraudsters have been contacting wedding planners to arrange for their wedding to be held in New Zealand. The fraudsters claim to have a budget of between USD $50k to $100k and ask the merchant to overcharge the credit cards and send money via Western Union. The money is claimed to be used to pay for flights for the guests to attend the wedding.

Art Commission Scam (updated 18/08/2009)

Fraudsters have been contacting art dealers to purchase art. The fraudsters claim to be agents working on behalf of a collectors in Asia, generally Singapore or Hong Kong. The fraudster asks for the credit card to be overcharged by the amount of their commission and the funds sent to them via Western Union.

Equestrian Product Scam (updated 21/07/2009)

Fraudsters are targeting businesses selling equestrian related products (e.g. saddles, horse floats). The fraudster pays the using a credit card and then asks the merchant to contact a shipping company for delivery of the goods.

Glass Shipping Scam (updated 21/07/2009)

Fraudsters have been contacting glass merchants ordering squares of glass. After the transaction has been processed the fraudster will ask the merchant to contact a shipping company based in Ghana for delivery of the goods.

Flower/Gift Basket Shipping Scam (updated 21/07/2008)

Fraudsters are targeting businesses that sell flowers and gift baskets. These orders are often for very large quantities e.g. 50 gift baskets for a graduation, and initially the order will be for pick up. Once the transaction has been processed the fraudster will then request the merchant contact their shipping company.

Accommodation Scam (updated 29/05/2009)

Fraudsters have been contacting motels to make bookings. Once the payment has been made by credit card the fraudster will contact the merchant and explain there has been a family emergency and will be unable to attend. The fraudster asks the merchant to refund the payment direct to a bank account overseas.

In a variation to the same scam the fraudster asks the merchant to overcharge their credit card and send money to them via Western Union. The fraudster claims they are unable to use their credit card to book other services and therefore requires the money to pay travel agent commissions or for flights.

Model Cars (updated 29/05/2009)

Fraudsters are targeting businesses selling model cars. Orders are being placed for products to be sent to Singapore. The orders are generally for large quantities of models and the fraudsters are often asking for the transactions to be split over more than one credit card.

Health Products / Supplements Scam (updated 24/04/2009)

Fraudsters are targeting businesses who sell natural health products and supplements. Orders are being placed for products to be sent to Ghana and Indonesia. The fraudsters will often state the address as being in Ghana, UK or have an Indonesian address but claim the country to be Singapore or Japan.

Flyers Shipping Scam (updated 16/02/2009)

Fraudsters are contacting businesses who produce and sell flyers asking for flyers to be printed with details about a church or orphanage. The fraudster will initially state the product will be picked up, but after the transaction has been processed, the fraudster will ask the merchant to contact a shipping company to arrange delivery.

All Card Not Present Transaction Processors (20/01/2009)

Visa has been made aware of a large scale data compromise at US payment card processor Heartland Payment Systems. New Zealand and Australian accounts were among those compromised. Please be extra vigilant, especially when accepting Card Not Present transactions.

For an update on the precautions you can take when accepting Card Not Present transactions and more information on how to help protect yourself and your business against fraud, please view our Card Security Guide.

Refund Scams - Accommodation / Conference Bookings / Travel Agents (updated 12/12/2008)

Fraudsters have been contacting motels, conference organisers, and travel agents to make bookings. The fraudsters ask the merchant to overcharge the credit cards and send money via Western Union. The money is claimed to be used to pay a travel agent's "commission" or to purchase flights etc. as they are unable to use credit cards to book other services.

In a variation to the same scam, fraudsters have also been making bookings with motels then claiming there has been an accident and the guests are unable to attend. The fraudster then asks for a refund to be sent via Western Union.

Counterfeit Cards Scam (updated 01/09/2008)

We have been alerted to a credit card fraud scam predominately targeting electronics and jewellery businesses. This is a sophisticated and professional scam involving a large number of people and counterfeit credit cards in circulation around the country.

The counterfeit cards are a mixture of chip and magnetic swipe cards issued from banks outside of New Zealand. Details of the scam are outlined below:

The cardholders will often work in pairs posing as husband and wife
They are confident, happy to be seen in the store and ask questions about products prior to purchasing
They have multiple fake cards all in the same name, fake IDs as back-up identification and always pull the cards from their wallets.

You may be able to identify these fraudsters by checking the last four digits of the credit card number with those printed on the receipt. You can also check the signature on the receipt matches the cardholder name printed on the bottom of the receipt if a pin is not used. These are standard checks you should get into the habit of performing if you are not already doing so.

If a situation arises where the card number or signature don't match the receipt, advise the customer the transaction has not been accepted and keep the receipts. Attempt to retain the card if this can be done safely and don't give the customer any goods. As soon as the customer leaves contact the Credit Card Authorisation Centre and the Police.

You should never attempt to prevent a cardholder from leaving your premises. It is best to establish where the cardholder went to and, if using a motor vehicle, record the registration number and description of the motor vehicle. This information together with a full description of the cardholder and any associates should be written down as soon as possible.

We have found that for this counterfeit ring the issuing bank does not always match what is printed on the credit card. By supplying the first 6 digits of the credit card you can ask if the issuing bank matches what is printed on the credit card to determine if it is fraudulent.