Operational Risks Task 13

What is CNP? CNP stands for Card Not Present and is when you order or pay for something online as you are not in front of the person you’re buying from and are only asked the details of the card and not for a pin. This accounts for more than half of all card fraud. There has been a massive growth of CNP over the past ten years and especially on the internet. CNP is now decreasing as many new sophisticated fraud screening detection is now being used by retailers and banks to make it harder for people to be able to use this card if it isn’t theirs. Another new precaution brought in to protect peoples cards is MasterCard SecureCode and Verified by Visa which is being used by both online retailers and card holders.

Advice for retailers: 5 payment security tips: 1.Spend time looking at your own cards so you know what a valid non-fraudulent card looks like and this way you are more likely to know when to not accept card or ask questions about the ‘owner’ of this card. 2.Make sure you know which type of cards your company does and does not accept and if you are presented with an overseas non-chip and pin card make sure you follow the correct security checks and procedures. 3.Check the customer. If they are nervous or trying to distract you they can invent stories to try and avoid suspicion or make you feel embarrassed for doing all the necessary checks. Watch out for random and careless purchases and look at the title of the card to make sure the customer is of the right gender and check if they are buying small value items with big cash-back as this could be a sign of fraud. 4.Check the card under a UV light as this can help to spot counterfeit cards. On Visa the letter ‘V’ should appear, on MasterCard the letters ‘MC’, on Maestro the word ‘Maestro’ and on Amex the letters ‘AM EX’ often with a centurion symbol in the middle. 5.Check the number of the card and the signature on the card matches those in the receipt as if this card is un-fraudulent and that is the real owner of the card then they should match.

Advice for consumers: 5 pieces of advice for staying secure online when buying products: 1.Keep your PC protected. Make sure you have a firewall installed, an antivirus that does regular checks on your computer and that you have the latest security updates in order to protect the information you are inputting on your PC so that no one else can reach it. 2.When you are putting your information in to the site check the address bar and make sure it starts with ‘https’ as the ‘s’ stands for ‘secure’ and there should also be a little padlock symbol in the browser window. 3.American Express SafeyKey, MasterCard SecureCode and Verified by Visa all work in the same way by using personal passwords to add extra protection when purchasing online. Once you have signed up to these services and then try to buy online you will be asked to enter these personal details in order to prevent fraud on your card. 4.Make sure that after you have completed your online transactions that you log back out of the website so that no one else will be able to easily access your card and personal details. Try to avoid using a shared or public computer as this could make it easier for people to find these details. 5.Never reveal your passwords to anyone and even those you trust as if you tell only one person then the information can spread widely and even over the internet which makes your card un-safe.

Reporting Fraud: Three ways in which you can report fraud and get advice: 1.The first thing you should do if you believe you have been a victim of fraud is to contact Action Fraud. You can do this by searching the name online and doing it through the website or once on their web page you can phone the number given in order to speak to real people about what has happened. 2.When you have reported a fraud you are then given the option for your contact details to be passed on to Victim Support which is a national charity helping those that have been affected by crime. If you take up this option you will then be contacted by someone from the charity and offered free and confidential emotional and practical help and support. 3.You can also come to this site to talk to people to get help if you think someone may be able to commit fraud against you and give you ways to help protect yourself from this happening now or in the future. They can also help you give advice to friends or family who are in this situation to make you feel safer when using your card or completing online transactions.