Better Business Bureau
Minnesota and North Dakota
Scam artists have no shame. They will use any tool to defraud businesses, including telecommunications devices for the deaf. First reported by Better Business Bureaus in 2004, this particular scam appears to be growing in popularity once again.
Here's how it works. The con artist uses a TTY (teletypewriter) or TDD (telecommunications device for the deaf) to contact a business. Using an Internet-based or telephone relay operator permits the scam artist to shield his real identity. By law, relay operators are not permitted to disclose the origin of calls, and they must relay any message, no matter how suspicious.
The buyer places an order for a large quantity of expensive merchandise and pays with a credit card. The business ships the order and finds out later that the buyer used stolen or fraudulent credit card information. The business suffers a financial loss and cannot recover the merchandise.
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According to reports to the BBB, this type of fraud typically involves:
- Orders for multiple quantities of high-end products;
- Out-of-state or overseas shipping destinations, sometimes to more than one location; and
- Overnight or expedited shipping.
The buyer may provide two credit card numbers to split the cost of the merchandise. If the credit card number is declined by the bank, the buyer may offer to pay by certified check (also fake). Sometimes the buyer asks the business to overcharge their credit card to cover fees they claim are needed to pay their shipping company, which allegedly won't accept credit cards. They then ask the business to wire the "overpayment" directly to their shipper.
If your company receives a large order from a customer using a telephone or Internet relay operator, ask the buyer for their complete name, address and telephone number. Ask for the name of the bank that issued the card, its toll-free customer service number (printed on all credit cards) and the Card Verification Code. Explain that these procedures are for their protection, as well as yours. If the caller refuses to provide the information, decline to do business with them.
Verify all information with the financial institution before processing the order. If the buyer sends a certified check, contact your bank to make certain the funds have been deposited into your account, before shipping the order.
