Telephone Order & Chargeback Fraud

Telephone Order & Chargeback Fraud

Dorset businesses are being warned about an increase in fraud involving telephone orders and stolen bank card details. This fraud can also affect anyone selling high-value items online.

How the Scam Works

Protect Your Business - Top Tips

✅ Be cautious of customers requesting third-party collection of goods. 

✅ For high-value orders, ask the purchaser to attend in person with the payment card and photo ID.

✅ If the customer attends, refund the telephone payment and reprocess the transaction with the card present and PIN used.

✅ Always obtain and verify the CVV/security code and use Address Verification Service (AVS) checks where available. 

✅ Be suspicious where the billing and collection/delivery addresses differ.

✅ Keep records of orders, customer communications and proof of delivery.

✅ Use 3D Secure/Strong Customer Authentication where available to help verify genuine cardholders. 

✅ Ensure staff understand the risks and liabilities associated with Cardholder Not Present (CNP) transactions. 

Warning Signs

⚠️ Large or unusual orders

⚠️ High-value, easily resold goods

⚠️ Customers unwilling to provide additional verification

⚠️ Urgent requests for same-day collection

⚠️ Collection by couriers, taxis or unknown third parties 

Remember: A card payment being authorised does not confirm that the purchaser is the legitimate cardholder. Authorisation only confirms that funds are available and the card has not been reported lost or stolen.

Please share with local retailers, trade suppliers and businesses across Dorset.

If you have been a victim of fraud please contact Report Fraud