Fraud takes many forms these days, and operators of retail businesses must constantly be vigilant. One of the newer trends in fraud at the retail store is “buy online, pickup in store”. This strategy enables brick and mortar retailers to compete with pure-online retailers by giving customers the option of searching online for product, but
immediately going to pick up the merchandise at a local store location. Unfortunately, many retailers are finding that this practice has become a commonly used avenue for using stolen/counterfeit credit cards. Criminals can try multiple transactions online until they find a credit card number that works, then produce a counterfeit copy of the card, together with a matching ID document, so they can pick up the goods in the store.
This mirrors a long-term trend in retail fraud associated with return-receipt fraud. Return fraud is an $11Billion-per-year issue.
One of the best ways to stop these issues right away is to implement procedures at the transaction location designed to obtain identifying information about the person conducting the transaction. FraudFighter™ has a variety of products that can aid in this process. Starting with “ID Document Image Capture and Authentication
” the driver license of every person returning goods in your retail locations can be scanned, authenticated as genuine, and the information stored in encrypted files for archived retrieval.
The benefits of authenticating driver licenses at the time of the return are many:
Another technique to test for fake driver licenses – much lower tech than ID Capture and Authentication – is to
utilize Fraud Fighter ultra-violet
lights as a front-linedefense against fake ID documents. UV lamps have the advantage of being low-cost, easy to use, and flexible due to the variety of documents they can authenticate. Used in conjunction with our patented Fraud Fighter™ “UV Driver License Guide
”, the UV lights can enable floor-level staff to verify up to 41 different states’ driver licenses.
A third way to obtain identity information about the
individual transacting in the store is to capture the fingerprint of the person on the return receipt document. The Fraud Fighter™ inkless fingerprint pad is specifically designed to do this. Simply have the customer touch the pad and touch the returned goods form, and an indelible fingerprint is captured – of sufficient quality to be scanned into FBI databases for searches against prior convicted felons.