A Case Study in Credit Card Fraud: A Dealer's Story

"I want this story told so other AV dealers don't have to go through what we've gone through this year," were the words written by Jon Scott, Louisiana-based Creative Presentations' Director of eCommerce, in an e-mail I received the other day. He continues to express, "We are thankful that it was only a $15,000 lesson we learned. It could have been worse."

Creative Presentation's Scott was kind enough to allow me to tell his story in hopes that other ProAV dealers don't make the same mistakes they did.

Some background first. Creative Presentations is NOT a box-house. In fact, they are well known and well respected for their systems integration work in an around Texas and Louisiana. But, earlier this year, they decided to foray into the world of eCommerce through a small Web presence. So, they set up a store selling projectors, screens and other AV accessories.

Well, almost immediately after getting their Web site store on-line, Creative Presentations learned about the good, and, more importantly for you - the reader, the bad of on-line order fulfillment. Sure, everyone is aware of the risks and pitfalls of on-line ordering and the issues surrounding credit card fraud and identity theft as that's all over the nightly newscasts on a regular basis. But, Creative Presentations learned the hard way, becoming a case study in how fraud can directly affect your bottom line.

"All I want is to help other dealers learn from our mistakes," expressed Creative Presentations' Scott. "I am hoping that by you [KNews] publishing a typical on-line fraud scenario for the whole market to read, no one else will get burned."

So, thanks to Jon Scott and Barry Edwards (Creative's president) below is a step-by-step synopsis on how fraud works, how to prevent it and even who, in the government, to contact if you have been hit with fraud:

What a potential fraudulent order looks like:

· Customer emails for information (typically no or little verbal contact) or submits an order online. Typically with little or distant communication, if any, and no large concern for price - usually, as most on-line orders are - ordered with expedited (air freight) delivery. And, of course, the bill to is different from the ship to.

· Bottom line: Need this order out immediately.

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