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Home Business, Watch out for Credit Card Scams

Home Business, Watch out for Credit Card Scams

A Home Business Article Contributed by Alina Sandor

New Business Scam Hits Home

There is a new credit card scam hitting business after business, and it may be coming to your home business. Scammers home in on businesses that do not deal with credit cards and many home businesses do not deal with credit cards, so they are more vulnerable.

One small business based in New York was taken by these scammers for over $15, 000 worth of credit card charges.

How to Run a Scam Business Without Leaving Home

These scammers have rigged a complex way of stealing money from businesses.

After an investigation of the small New York business's charges, the owner realized that someone had stolen a batch of credit card accounts, then stole his company's name, set up an imposter version of the company, and charged thousands of dollars worth of fake purchases. Then the "profits" were then deposited into checking accounts controlled by the scammers. For scammers this is the perfect way to get thousands from the comfort of their own home because they use the Internet.

At least fifty other companies also had their business's identities stolen by scammers. Millions of credit card account numbers are stolen every year, with 60 million stolen last year, but making money off of these stolen accounts can be hard without the right plan. Merchandise ordered with the card must be delivered somewhere, which can lead cops right to the scammer's door, and massive cash withdrawals are quickly spotted by credit card associations. This scam allowed the criminals to take a legitimate business, impersonate it and set up accounts with merchant processing providers.

Merchant processing providers are companies that transfer funds between credit card companies and merchants. The scammers also registered a phony web domain name and site. This tricks the merchant processing providers into giving the thieves their accounts because it looks like a legit business.

Using the stolen credit cards, thieves send small payments to the fraudulent merchant accounts. Then, the unsuspecting credit card companies send funds to the merchant processing providers. They then send the funds off to scammer's bank accounts. That's all it takes.

Home Business Beware

No one knows how much money the criminals actually got away with, but it was thousands at the least. Using one stolen credit card, they attempted to steal $2, 500 through five different fake merchant accounts.

Home business owners need to beware. There's little small companies like the one from New York can do to prevent this kind of scam, but there are two pieces of practical advice a home business owner can use. Every week search the Web for evidence of impersonation.

Businesses can also protect themselves by checking all mail as soon as it hits the mail box and shred any credit card offers.

If you do find a company who is trying to impersonate your home business, report them to the authorities right away.These two tips can keep your business clear from being scammed out of thousands of dollars.

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Home Business, Watch out for Credit Card Scams

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