Advisory: credit card scam

In particular, detectives are aware of overseas conartists attempting to purchase large quantities of expensive champagne, high-end china and crystal. 

In a typical scenario, the scammer e-mails or calls a retail business asking for a quote on a quantity of high-end goods. The business confirms it can supply the goods and the scammer then provides the business with credit card details which are to be used to process payment for the goods.

The retailer never has the card in their possession and the card details have to be entered manually into the credit card machine at the point of sale. The scammer always asks to be informed when the payment has been processed. 

However, the credit card details provided by the scammer will be from recently stolen credit cards, or cards which have recently been ‘skimmed.’ Thus, the payments are often processed as the card issuer is not aware that the card/account has been compromised.

Once the scammer receives confirmation that the payment has been processed successfully, they will typically explain that the order was incorrect and that a proportion of the funds need to be refunded immediately. The scammer typically does not ask for all of the funds to be refunded and will often telephone the business during the latter stages of the scam, providing convincing explanations when asked for further information. 

The refund will usually be asked for in the form of a wire transfer to a foreign bank or via a money transfer through generic money transfer services. If the refund is sent, the scam is complete - potentially leaving the retailer as well as the cardholder with a large financial loss.

Inquiries into this matter are ongoing and anyone who may have been affected by this scam is encouraged to contact the Financial Crime Unit on 295-0011.