Both the Alberta and Saskatchewan RCMPs are warning of a credit card scam targeting businesses in both of their respective provinces.
Over the past six months, RCMP Crime Analysts have found that businesses have been victims of similar high-dollar scams. Fraudsters call the business trying to make a large transaction, paying via multiple credit cards.
The only contact between the business and the scammer is over the phone. Only after the company has shipped the items do they find out credit card has been reported stolen or the true cardholder gets the charge reversed.
While a substaintial portion of the businesess targeted have been tire or auto part shops, the RCMP says this could happen in the same way to any other business as well.
In some cases, fraudsters might recuit someone to pick up items from a legitimate business, and then take them to a secret area, without CCTV, to do a hand-off. In these cases, people might be offered money to do it, so people should be cautious of these offers.
Red flags for businesses to watch for include new customers asking to ship products long distances, often to another province, customers only a phone number or generic email information, and multiple credit cards are used with some being declined while others work.
To combat scams, the RCMP says businesses should be aware of potential frauds, educate their employees about fraud and have good fraud protection policies,which they can also work with credit card companies or their payment specialists on.
If someone believes they could or have been a victim of fraud, or wants to report a scam, can contact the RCMP, CrimeStoppers or the Canadian Anti-Fraud Centre.