posted on Nov, 15 2007 @ 08:04 PM
This is the most frustrating story in the news.
I have a degree in computer related crime investigation and my career has been in and around the field of ECommerce Security. I'm sorry to bust your
bubble, but Internet Security is a complete JOKE.
Before I go off on a wild tangent about how common people lose billions of dollars to identity theft every year and nobody does anything to stop it,
i'll tell you the truth about these (over ONE dozen!) mysterious $5.00 fraudulent charges
When your website gets a sale for the absolute cheapest thing you offer with Next Day Air Shipping and the contact email address belongs to
"firstname.lastname@example.org," pretty safe bet that's not a legitimate order. But if criminals are smart enough to create, commit, and get away with
these crimes, how can they be so stupid as to place their order using all the common red flags for fraud? They're just testing cards! When their
tiny transaction gets approved, they know they can start using it on products they can sell overseas.
You would think that testing cards this way is a bad idea, since it's an obvious tip off that it's fraud. Surprisingly, you'd be wrong. Because
half of our management has had direct experience with credit card fraud in ecommerce and the time it drains from your productivity, EVERYTHING
fraudulent is reported to the Internet Crime Complaint Center as well as the FBI. We dilligently report internet crime, fight chargebacks from credit
card companies who happily return money to customers and then make US pay for the crime. The credit card company doesn't foot the bill like they
tell you. They still your small business owner neighbor with the bill because his website fell victim to fraud. You know it's really bad when
legitimate customers are filing chargebacks because they no longer recognize their charges, and the credit card companies STILL take the money away
from you. Just so you know, those companies aren't as helpful as they'd have you believe. They're making sure you keep your money by making sure
i pay them.
Anyway. Internet Fraudsters don't care about Ron Paul. They care about stealing money from innocent people. You see a historical fundraiser with
constant donations that rank in the millions. Fraudsters see a ridiculous number of transactions being processed at speeds that threaten the security
of credit card processors. Put 2 and 2 together, boys and girls, because that makes a massive online fundraiser a gold mine for thieves. They can
test their cards all they want without fear of those cards being caught, because everything is so frantic.
Don't worry. All the people who had $5.00 taken from their account got that back probably within 24 hours if not instantly. But think about all the
money that was lost on those cards on big purchases after the test charges worked. Remember, even though you're covered, small business is forced to
give the money back to the credit card company to pay you. Then, small business turns to the only people it can- the authorities. Remember that i
told you my company reports every case of fraud to the FBI? Yeah, we have NEVER received a call from them regarding ANY of our cases, and we have
hundreds of cases open.
But the inadequacy of our fight against internet crime is a topic for another thread.