Beware of Frauds, Scams, and Stolen Credit Card Orders

Halloween may still be a month away, but on any given day, booksellers should beware of the very spooky prospect of losing a lot of money because they fulfilled a big order that turns out to be fraudulent. Some scams may be obvious to experienced booksellers, but all new staff, and those holiday temps, likely need special training to identify the many varieties of fraud. It can't be stressed enough to staff: Be vigilant. If something about an order seems fishy, it's worth looking into.

Just recently, one bookseller reported being put on alert by a significant credit card order from out of state. For her store, it was rare to receive an out-of-state order, and so it seemed strange. A phone call revealed that it was strange: the purchaser was using a stolen credit card and a fake address.

Any time a bookstore receives a large order from out of state or a great distance away, it is good business to call the customer to confirm the order and the card number. For the bookstore, asking for the three-digit security number on the back of the card ensures the purchaser has the card in his or her possession. For valid customers, a call from a staff member who explains that, for the cardholder's protection, he is calling to confirm the order, that extra bit of customer service will likely be appreciated. Chances are, if the card is stolen, the phone number will not work or will be a wrong number.

Here are some other frauds and scams to keep an eye out for:

• Fraudulent orders from abroad or out of state for expensive medical and law textbooks, technical books, or Bibles frequently appear. Often with these scams, the retailer's preliminary swipe of the credit card indicates a valid card. Subsequently, the card is reported stolen and payment is stopped. Thieves often use stolen cards just before weekends and holidays when main credit card offices are closed, which delay reporting of stolen cards.

• Large orders of expensive books, unfamiliar customers from other states, orders from teletype relay services (TTY) for hearing-impaired people, e-mail addresses from overseas with domestic shipping addresses are all red flags indicating possible scams.

• Another scam alert, courtesy of the Pacific Northwest Booksellers Association newsletter, featured an Oregon bookseller who received a tube of "labor law" posters that had not been ordered. Recalling a previous manager who had been charged for materials in a similar scheme, she refused the FedEx delivery. These posters, apparently depicting some aspect of workplace regulations, come unsolicited, and some booksellers may be inclined to accept them without question. A more aggressive approach by the poster supplier involves a contact by mail or phone in which the store owner is told that he or she will be assessed huge fines if the expensive posters are not purchased and displayed in the workplace.

• There is a check fraud scam that appears to be growing. The scam involves the thief lifting a bookseller's check to a vendor prior to its reaching its destination. The perpetrator alters either the check amount and/or payee information and then finds someone who will cash the check and send part of the payment back to the scammer. A previous BTW article outlines some check fraud tips from the National Check Fraud Center.