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- Computer
Hackers are NOT the real problem with the
security in today's electronic commerce.
Computer Hackers By Definition are people who
test the security of systems for knoledgable
gain. Loose translation. Real computer
hackers enjoy the thrill of entering a system
un-detected and leaving just the same. Please
read below.
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- Technical
Notes:
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- Computer
Hackers
- 1-03-08
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- Computer
hackers by default are people who enjoy
entering systems in which are claimed to be
secure. This grand chase so to speak is what
Computer Hackers Strive for.
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- Many
companies hire computer hackers to test the
vulnerabilities of there systems. These
hackers break into systems and report holes
that company engineers quickly
seal.
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- Recently
computer hackers have been blaimed for 40
million stolen credit cards from a single
credit card processing company. People all
over the world are now worried that there
information may be used for identity theft. A
report on the television states that credit
card theft is a major global business that is
costing some 40 billion dollars in losses
every year.
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- What the
television stations fail to explain is how
the credit card purchase process really
works, who takes that loss, who is
responsible for these actions if your card is
stolen and used without your knowledge.
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- This is what
we are going to explore here in this
section:
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- Role of the
computer hacker or scam artist:
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- Obtain as
many personal accounts as he can to sell to
overseas crooks. These people pay big money
for complete customer account information
such as card number, billing address, names,
phone numbers cvv2 data and so on. They then
use these cards to purchase goods and
services and often have them shipped
overseas.
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- Many people
think that if there is a problem with there
credit card account that the credit card
company eats the losses. WRONG
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- Credit card
companies simply place the burden of proof on
the credit card processing company who passes
it along to the merchant. It is the merchants
job to proove that he or she secured the
payment method and shipped the goods to the
billing address of the card on
file.
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- What does
all this mean ??
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- John Doe has
his credit card lost or stolen and charges
appear on his account that he doesn't
recognise. John Doe calls his credit card
service center and reports these transactions
as suspicous.
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- Temporarily
the amount charged on John Doe's card is
placed back and he is happy for he is NOT
liable for the charge since in fact he didn't
make it.
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- Now, The
credit card company initiates an
investigation into the charge, what does this
really mean ?
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- The credit
card issuing bank simply deducts the funds
from the merchant who sold the goods or
services and sends out a report that calls on
the merchant to provide proof that he or she
filled the order and secured the funds to the
card issuing bank's requirements.
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- O.K. What
does this mean ??
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- When you
have a fraudulant charge, the credit card
company takes the money from Jane Doe's
Account ( The Company or merchant who
received the order and charged the account ).
Jane Doe now has to prove to the credit card
issuing bank that they filled the order to
the CORRECT customer at the CORRECT address
and have PROOF. If the merchant has enough
proof to show they verified the billing
address and shipped with confirmation the
goods to that address, they may in fact win
the charge back.
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- Oh, by the
way. the credit card issuing bank charges the
merchants a fee for the paperwork for
handling the charge-back. And some banks
charge you the card holder a fee of up to $
50.00. So who is really loosing here. The
merchant and the customer.
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- The merchant
has lost the products or services they
suplied to the scam artist and they have lost
the money for the order along with the
adminstration fee for processing the
charge-back. The credit card issuing bank
looses nothing.
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- What can you
do as a merchant to help prevent this from
happending.
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- Four Easy
Things to watch for:
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- 1) You as a
merchant have the right to verify account
holder addresses. You can do this by
contacting visa mastercard at 1-800-337-2255
and asking for an address verification. If it
matches the billing address on the order
form, you can fill it.
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- 2) Be smart.
Offering separate shipping addresses is risky
because you have no idea if the person
placing the order is the real card holder.
Some one who obtained your information could
be using it to order things with the correct
billing address, then shipping it to another
location.
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- 3) Use
common sense, DON'T ship to countries
overseas that are questionable in nature.
Nigeria, Pakistan, Indonesia, Ghana and so
on.. Read the US Government warning on
overseas scams on the US government website.
There they place warnings about scams from
overseas and warn US merchants NOT to engage
in order fulfillment with anyone from these
countries unless payment is made in a secure
manner.
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- 4) Avoid
Cashiers Checks from the above countries as
well. 99% of them are fake. They will come in
a plain envelope and have no return address.
Now Really, who sends a large cashiers check
in the mail in a plain envelope without
tracking and a return address. Sure it will
clear for a couple days, then the bank will
take all the money back and you are again on
the loosing end of a scam. This is called the
"nigerian check scam".
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- The rule of
thumb should always be, if you don't feel
right filling the order, don't. Email or call
the customer and explain your secure payment
method policy and offer different ways to pay
such as western union, money gram, cash or US
postal Money Orders. If the person is real,
they won't have an issue meeting you in the
middle. If they are scammers, you will never
hear from them again.
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- Remember,
the merchant looses, NOT the credit card
issuing banks.
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