MTA member avoids a credit card scam

Public news

Automotive businesses in South Australia, particularly new and used car dealers, have been targeted by scams involving stolen credit cards and one MTA member has successfully avoided being caught out.

The member was able to identify suspicious activity after reading our recent article on credit card scams and how other automotive businesses have fallen victim to them. Click here to read these scenarios.

The member remained vigilant when dealing with a suspicious buyer and credit card transaction. If they hadn’t, the business could have lost a Holden Calais worth approximately $15,000 and the cost of the transaction.

The MTA has a business partnership with Commonwealth Bank of Australia (CBA), who have provided us with their suggested guidelines below.

For in store transactions, never accept a card if:

  • The terminal doesn’t recognise the card
  • The card expiry date has passed
  • The card or the signature has been visibly altered or tampered with
  • The signature doesn’t match that on the back of the card
  • The card is damaged

For over the phone transactions:

  • Request the card verification code (three digit number on the back)
  • Again, ask for comprehensive customer details and do validity checks!
  • Consider using a security program such as MasterCard SecureCode or Verified by Visa. These additional layers of security provide, among other things, mechanisms such as an SMS that gets sent to the customer before allowing the transaction to proceed
  • Follow up with an order confirmation
  • If sending stock to the customer, always use your own courier
  • Ask for identification on delivery and do not leave goods at unattended addresses
  • For in store collections, insist on matching the customer’s I.D. with the same credit card used for the initial transaction
  • Consider the use of maximum transaction amount controls as a business policy

If you have any questions, or would like to report a similar incident that has happened to you please contact your Industry Engagement Specialist, Nathan Groves, by clicking here.