Preventing Fraud on Phone and Internet Orders

Flexibility in placing orders by phone or internet can increase the number of ways an identity thief can utilize an individual's personal information to commit credit fraud. Knowledge is the key to preventing fraud relating to phone and internet orders. Take every opportunity to educate your staff on fraudulent phone and internet orders.

To help mitigate your losses due to credit fraud related to phone and internet orders:

• Don't allow anyone besides the account holder to place an order. Only the cardholder(s) is authorized to place phone or internet orders.
• Avoid shipping to third-party addresses. Fraudulent orders are often shipped to an alternative address.
• Review and verify orders being shipped overnight or same-day delivery. Possible verification methods:
  • Check the customer's home address and home phone number using directory assistance or a free online service.
  • Call the customer to validate his or her phone or internet order. Thank the customer for shopping with you or tell the customer that you make such calls to prevent fraud.
• Be aware of merchandise that is considered high risk for fraud. Electronics, jewelry, and sporting goods are examples of high-risk industries, but each merchant will have specific high-risk items. If a customer places an order for only high-risk merchandise, treat the order as high risk.
• Watch for suspicious purchasing patterns such as placing multiple orders in a short amount of time or placing several high-dollar orders in a short amount of time. Consider adopting a policy that employees must verify high-dollar orders with a fax of a state-issued picture ID and proof of the shipping address.
• If you consider any order to be suspicious, ask the customer to fax verification of his or her identity or address. A valid cardholder should not object to a request to verify identity or address. Verification methods include:
  • Valid government-issued IDs (use an ID checking guide for comparison)
  • Utility bills
  • Credit card bills
  • Voided checks
  • Rental agreements

Contact us

By phone: 1-800-257-7799, Monday – Friday, 8:00 am - 7:00 pm Central Time
By fax: 1-800-499-2567
By email: frauddept@wellsfargo.com

Note: The points above are suggestions rather than requirements. Following any or all of the suggestions does not relieve a dealer of fraud liability.