Police in Peterborough investigating credit card scam after store loses $200K

PETERBOROUGH, Ont. — Police in Peterborough, Ont., are warning businesses to be cautious when processing over-the-phone credit card transactions after a local business lost more than $200,000 in a recent scam.

The force says that between mid-October and this month, two men called a contracting supply store and ordered home renovation materials, with an employee processing credit card information for both purchases over the phone.

Police say that after the transactions were approved, someone went to the store the next day and picked up the goods.

In mid-November, the store owners contacted police to report what’s known as a “card-not-present scam,” where a credit card is processed over the phone with a scammer providing stolen or bogus card information.

Police are warning businesses about conducting credit card transactions over the phone, saying credit card companies will not reimburse businesses for money lost as a result of card-not-present scams.

The force is also investigating a separate incident at a local store where they allege that while making a purchase with a credit card, a man distracted a clerk while a woman put in a 13-digit override number into the machine and then swiped a second card along the side of the pin pad.

They say the store manager learned days later that the card was stolen and the credit card company would not cover the incurred loss.

Police say store employees need to be attentive when customers are making a purchase using a pin pad, noting that while clerks often turn away to give customer’s privacy, some level of vigilance is required.

Source: https://toronto.ctvnews.ca/police-in-peterborough-investigating-credit-card-scam-after-store-loses-200k-1.4188216

Jack Mao

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