I I just got a call for a jeweler, helping a lot on how they snooker themselves with an $ 8,000 gold bracelet. Here is what happened.
1. Two older men come in, look around and âlookâ at the heavy gold bracelet.
2. The next day, two young white men walk into the store. One of them talks on his cell phone, to distract himself.
3. The other looks and buys the bracelet with a DEBIT CARD. Most debit cards have a maximum spending limit of between $ 2,000 and $ 7,000. They run the card in the machine for $ 8,000, and of course it gets turned down. The young man says, “It happens all the time, let ME call the credit card company,” and he calls a fake phone number, which just happens to be his friend who repeated that.
4. He then hands the phone to the associate saying âHere they have a code for youâ.
5. The fake friend gives them a fake authorization code, but he CROSSES and prints a receipt (see image).
6. The staff think that all is well and that everyone is good. But the owner is suspicious, follows the guy out of the store who walks a block, turns right, and gets into a waiting car.
7. They have cameras and photocopies of the driver’s license (hope to share this as soon as I have a copy).
They called the credit card processor who said, “Oh this is the biggest scam you can Google how to do this in a store.”
How can you be sure that you are not “snooked”?
EASY: The store calls the credit card processor phone number they gave you when you got your processor. NEVER let the customer call you to tell you it is the credit card company and give you the phone.
Here’s a full description of the due.com blog scam:
Force authorization scam
When a customer’s card is declined, a merchant can perform a âforced authorizationâ to complete the transaction. A merchant usually performs forced authentication because they have already delivered goods or services and want to complete the sale. To force a transaction, the merchant calls the cardholder’s issuing bank to obtain an authorization code to override the denial.
In a forced sale, any combination of numbers forming the “code” will void the refusal. When a customer presents a declined card, he tells the clerk âit happens all the timeâ and asks them to enter a combination of alphanumeric characters.
If the clerk enters the wrong authorization code instead of calling the cardholder’s issuing bank to obtain a valid code, the transaction will be completed. However, the trader assumes all risk. If the authorization code is fraudulent, the merchant will not be able to file a dispute. They will also be subject to costly chargebacks and fines.
Never enter a code given by a cardholder to force a transaction. Always allow the terminal to obtain an approval code.
Looks like they can use a debit card for a legitimate purchase, give the friend the authorization code for that purchase over the phone, and because it’s a legitimate code, it starts over. But you will not receive your money, although the receipt prints.
Always call the processor phone number that you have on file.