A new kind of credit card fraud is on the brink of becoming a major issue in Ireland. As yet the problem has not arrived in Ireland, but it can’t be far behind when the UK is suffering near London. AVS or address verification system is used to check the billing address of the card holder with the address provided by the person trying to make a purchase. This system is used in several places around the world.
Most of the places that have this system are the banks and credit card companies. Every time a person makes a phone call to the credit card company they are asked to verify details. These details like the address need to match the consumer data in the system. The problem is the criminal element has found a way to hack into the system. They have already hacked into two companies in the UK, and now Ireland is wondering if they will be next.
What the fraudster does is hack into a retail company or even the banking system to access personal information of shoppers. They then sell the data to the international crime ring either online or in person with those they constantly work with.
Most often these individuals will take the information and make an online purchase or a telephone purchase. They rarely head into a shop as it is easier to get caught. With the information they have the fraudsters will fill out the online forms offering the billing address the card is registered with, but a fake name as the cards are usually cloned. Then for the shipping address the criminals put in the place they want the goods to show up at. This is usually a phony address for themselves to cover where they really live. Once the goods are delivered the address is not used again and they go on to use another card details in the same way.
The AVS system will verify the billing address and take the payment as genuine despite the shipping address. There have already been more than 10,000 card details stolen. Car rental companies and even larger hotel chains tend to use the AVS system as well.
As long as the details match, the purchase goes through and this leaves the card holder oblivious until they get their statement. In a warning the card companies of Ireland are letting consumers and businesses know to update their security to beat the hackers. There are certain regulations the companies must abide by with credit card security.
Any business that is not following the proper security of records could face fines, especially if they are hacked as a result. For consumers the best thing you can do is check your statements often and make sure the card is not out of your sight. This ensures that the card can’t be stolen and any fraud activity is caught before more trouble begins. No system is safe when it comes to credit cards, but some caution is wise.
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