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Protect Yourself from Email Fraud

How the Fraud is Perpetrated:

Typically, the fraud is executed by a suspect stealing a Visa account number or by using an account generation program. The suspect may have obtained additional account holder information (e.g., CVV2, Expiry Date, etc.) as well as other data elements. The suspect then attempts to use the stolen Visa account for a transaction with business owners at an amount greater than the required transaction. The suspect ends the scheme by requesting the business owner mail the transaction difference back to them through a wire transfer or money order service. This fraud scenario typically transpires as follows, with all correspondence taking place via e-mail:

• Fraudster e-mails property asking about room availability
• Fraudster explains that they have other family members who need accommodations and provides date range for reservation (typically 5-7 nights)
• Property advises customer on room availability and price
• Fraudster agrees to rates and provides payment card information
• At this point, the fraudster asks the property to add an additional amount to the transaction to cover additional expenses for the fraudster’s family members. The fraudster will then claim that their travel consultant does not have a facility to charge their payment card.
• Fraudster instructs property to wire transfer the additional fee amount to a third party where it can be picked up.

Recommended Strategies & Best Practices

Visa strongly recommends heightened vigilance in your authorization strategies for future "Card Not Present” transactions. Visa Fraud Investigations and Incident Management recommends the following best practices for this fraud scenario:

• Merchants should authorize transactions for the actual purchase amount, not for additional or “future” sums for which a customer may seek reimbursement.
• Merchants should be advised to contact their acquirer or processor if they are suspicious of a transaction.

If you receive such a request, or are suspicious that someone may be attempting to defraud you, contact the Fraud Investigation unit of the credit card company in question.

Visa and Mastercard both provide resources to merchants to help protect your business from fraud.

Thanks to all of those AHLA members who have contacted our office to warn others about this scam!