ARA is advising its members that several automotive recyclers, most recently in Michigan, are reporting the loss of hundreds of dollars as a result of credit card scams. These incidents are believed to be connected to a multi-state organized identity theft ring.
ARA is urging all members and their employees to beware of any suspicious credit card orders. For example, orders for parts that are then sent to a different billing address. Once the parts are received, the company challenges the credit card payment and the recycler receives a chargeback. Of course, the parts shipped are unrecoverable.
Now is a good time to make sure your business has procedures in place to prevent credit card fraud and identity theft, and that your employees are aware of those procedures. To mitigate against this type of fraud, consider the following actions:
1. Verify billing address of cardholder.
2. Do not ship to anywhere except that address.
3. Obtain a signed authorization form.
4. Finally, get an authorization code.
Please contact ARA to report any similar suspicious activity.