Call Tag Fraud and Internet/ECommerce Merchants

Here’s a nifty fraud scam that cost several very large internet merchants big losses. The merchandise involved is usually high ticket items. It works like this.

1. Fraudster buys good with stolen card info. When the item is shipped, the frauster receives tracking information via email.

2. Fraudster calls the person who lives at the address where the merchandise is being shipped. Identifies himself as the merchant and says the item was shipped in error. Asks for permission to pick up the merchandise. The person where the merchandise is sent agrees.

3. The shipping company comes to pick up the merchandise using a call tag from a shipping company that is different than the one the merchant uses.

4. The merchandise is sent out of the country. The merchant eats the loss as well as the chargeback caused by the stolen card.