Federal Express tracking services informed us that our shipment had been signed for by a Ken ILO. Well aware that something was definitely wrong, we contacted the Metropolitan Police, and told our story, to no avail. Finally, we secured the services of a Private Investigator in London to assist us. He immediately ascertained that the address we had been given was just slightly incorrect. For example, we were given an incorrect zip code, the providence given was Chalkland, but it should have been Chalk Hills Estates, etc. Anyway, it was just incorrect enough that Federal Express had to call the addressee for verification.

"I also fell upon one of my contemporaries up North who was given a $150k counterfeit cashier's check. Watch for those too."

Then, upon delivery, they found a flat with no one at home. Leaving a slip on the door, Fed Ex then took the shipment back to the station, where it was picked up in person by <a person with a different name>. The address is actually a vacant flat in a very unsavory part of town. The original caller, by giving an inaccurate address, made sure he was forewarned of Fed Ex's impending delivery. He then knew the timeframe to go by the flat and obtain the Fed Ex slip left on the door. He then sent what was most likely a random cab driver to the station to pick up the package. The numbers given were disposable cellular phones...anonymous, untraceable, and literally thrown away.

I contacted the Metropolitan Police, the Secret Service, the Dallas Police, a special task force put together for just this type of fraud, and the Fed Ex fraud department. All reviewed my situation and concurred with the following. There is a Nigerian Crime Spree in London. They have machines called sequencers that pull sequential credit card numbers that are valid. They then use a common company name, the disposable cell phones, and vacant addresses to perpetrate the crime. They are virtually unstoppable. Apparently, there are separate credit card networks for the two countries. So, if an England cardholder reports a stolen or misused credit card to their carrier, it can take a month or more for the information to update in the US system. This gives them ample time to execute the crime, even if the cardholder realizes their card has been compromised. There is no coverage under traditional insurance, and no special rider for credit card fraud to protect merchants. The credit card processing company only assumes responsibility under certain circumstances. To avoid what I experienced, here's what to do...

1 - International shipments: Don't do them unless it is a customer/company with whom you have dealt before. If you are determined to fulfill this type of order, do the following...

2 - Use the Internet to verify addresses (and that they are not residential areas) and company info., not just your credit card company. This is hugely important. Most countries have a national registry...for the UK, its called The Company House, in the states of course its the Federal Identification Number. You can match the registry number and company names online, instantly.

3 - Ask for the PIN number on the credit card. Every credit card has one, and you have to have the credit card present to know the number. On AMEX, its on the front of the card, on Visa/Master Card its on the back. If they have a problem providing this info, they don't have the card, just the number.

4 - Use the credit card AVS system. Not only does most software have this capability, but you can also verify this info over the phone. Make absolutely certain your software is using this feature properly. If you are not sure, call your processor and give them an example of the Authorization Codes you receive. That will let them know if address verification is being done. If not, they can walk through the software set up to find the problem. Just because you're getting an approval code from your software, that doesn't mean its verifying the addresses! I did obtain approval codes on these cards and did have the signature on the PO, but niether helped me. I thought I was verifying addresses, as one section of my setup showed I should be. But one question in my set up was answered incorrectly, so no address verifications were done at all! Even though it was the credit card rep who set up my software, it was my responsibility that it was not being done.

5 - Be wary of sequential credit card numbers.

6 - Ask for a faxed copy of the credit card front and back and picture identification to accompany the first sale to any credit card customer.

7 - Contact your Insurance Carrier and find out if fraud is covered by your policy. The more inquiries the insurance companies receive, the sooner they will offer coverage options.

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