Fraud prevention support

Fraud can happen anywhere — online, in-store or through everyday transactions. Fraud prevention is crucial to protect your business’s revenue and reputation. As a business owner, staying vigilant is key to protecting your revenue, reputation and customers.

This guide will help you recognize common fraud tactics, secure your payment processes and respond effectively to suspicious activity. By implementing strong security measures and trusting your instincts, you can reduce risks and keep your business safe.

How can I prevent fraud?

Chase fraud prevention starts with simple steps you can take every day. Protect your POS equipment and your business by remembering these three key actions:

Stop

Assess the situation. Check for all the signs. Don’t take action just yet.

Think

Does this seem unexpected or suspicious?
Can you verify the information?

Protect

If it doesn’t look right, it probably isn’t. Take the necessary steps to secure your business.

What are the most common types of fraud?

Fraud comes in many forms and knowing what to look out for can help keep your business safe. Here are some of the most common types of fraud that affect businesses:

Phishing scams: Scammers pretend to be trusted contacts and send emails or messages to trick you into sharing confidential information
Invoice fraud: Fraudsters send fake invoices, often claiming to be familiar vendors, hoping they’ll be paid without anyone checking their authenticity
Credit card fraud: Someone uses your business’s credit card details without permission to make unauthorized purchases
Payroll fraud: Employees may alter payroll records or create false entries to receive pay they haven’t earned
Business identity theft: Criminals impersonate your business to open accounts, make purchases, or access sensitive data
Cybersecurity breaches: Hackers target your company’s digital systems to steal information or disrupt your operations

Being aware of these threats is a key step in Chase fraud prevention for business owners like you.

What are some warning signs of fraud?

There are lots of red flags you should be watching out for. Here are a few examples:

Unusual financial transactions: Look for unexpected or unexplained transactions, such as large cash withdrawals or transfers to unknown accounts
Discrepancies in financial records: Be alert to inconsistencies between financial statements, invoices and bank records
Changes in employee behaviour: Notice if employees are living beyond their means or are overly protective of their work.
Unexplained inventory shortages: Frequent or unexplained inventory discrepancies can be a sign of theft or fraud

Staying vigilant for these signs can help prevent fraud in your business.

Does it seem suspicious?

If it does, never disclose:

Your merchant ID (MID)
Your merchant account information
Your tax information
Your statements

Fraud prevention FAQ

The following FAQ will answer your most common questions about fraud prevention and provide you with actionable tips to help protect your business.

Chase fraud prevention starts with strong security habits:

Never share your login credentials with anyone
Verify unexpected phone payment requests before proceeding
Train employees to recognize fake emails and websites

Real-time fraud monitoring
Security alerts for suspicious activity
Chargeback and dispute support

Please call us immediately at 1-800-265-5158 and ask to be transferred to the Fraud department. Chase values you as a merchant and will put protective measures in place to protect your business’s account and data.

The transaction will be put on hold and reviewed by our Risk team. If they need more information, like invoices from your business, they will contact you directly.

A chargeback occurs when a customer disputes a transaction with their bank, which can result in the funds being withdrawn from your account. This can happen due to fraud, customer dissatisfaction, or processing errors.

High chargeback rates can increase fees and even lead to account restrictions. To reduce them:

Analyze chargeback reasons and adjust policies
Improve customer communication and transparency
Strengthen fraud detection measures

A dispute happens when a customer contacts their bank to question a transaction. At this stage, you have the chance to resolve it by providing proof of the sale or issuing a refund if needed. If the dispute isn’t resolved, it turns into a chargeback, where the bank reverses the payment and may charge you a fee. Chargebacks can impact your business, so addressing disputes quickly helps prevent financial losses.

Track hardware serial numbers and inspect for tampering
Use security cables or locked stands
Train employees to recognize suspicious activity

When your POS (Point of Sale) is tampered with, it means someone has physically altered or compromised the device. This could involve adding unauthorized equipment like skimmers to capture card details, tampering with the wiring, or replacing the device with a fraudulent one. Regular inspection of your POS hardware for signs of tampering, such as unusual attachments or damage, helps prevent fraud and ensures your equipment remains secure. Below are some signs that your device has been tampered:

Missing or mismatched serial numbers
Unusual attachments or loose parts
Unexpected device behaviour (slow transactions, errors)

Stop using the device immediately
Notify your payment processor and IT team
Review security camera footage if available

Verify customer IDs for large purchases
Be cautious of customers who rush transactions
Watch for unusual card behaviour (e.g., multiple declines)

Ensure regular maintenance and updates of your POS systems
Work with vendors to maintain PCI DSS compliance
Keep an open line of communication with your vendors for quick issue resolution

PCI DSS is a set of security standards that protect payment card data. It requires businesses to ensure that sensitive cardholder information is stored, processed, and transmitted securely. This includes encryption, access control, and regular security assessments. Compliance with PCI DSS helps protect your business and your customers from fraud and data breaches.

Ensures secure handling of customer payment data
Reduces risk of data breaches
Helps businesses avoid fines and penalties

Disable remote access from the Internet unless necessary
Use remote management tools with strong security controls
Regularly update remote access software and change your default passwords
Restrict access to trusted third parties
Enable data encryption and logging
Implement a hardware-based firewall with advanced security features

Placing orders with stolen credit card
Hacking customers accounts to make unauthorized purchases
Using bot attacks to test stolen card details

Fraud scoring tools that analyze transaction risk
IP tracking to flag unusual locations

Use Address Verification Service (AVS), to verifies the billing address provided by the cardholder against the address on file with the card issuer. If the addresses don’t match, it could indicate fraudulent activity. It helps you reducing the risk of chargebacks and improves transactions security
Require CVV codes for all transactions, also known as CVV2 (Visa), CVC2 (Mastercard) and CID (Amex and Discover card)
Monitor high-risk transactions (e.g., large orders from new customers)
Follow Payment Brand Data Security support to assist you in complying with Visa’s Cardholder Information Security Program (CISP) and Mastercard’s Site Data Protection Program (SDP)

Fraud can take many forms, and knowing the warning signs can help you protect your business. Here are some real-world scenarios where fraud may occur and what to do if you encounter them.

Being aware of these fraud tactics can help you make informed decisions and reduce risk. Always trust your instincts — if a transaction feels suspicious, it’s okay to take extra steps before proceeding.

A customer insists their bank provided them with an authorization code and asks you to enter it manually.

Red flag: Banks do not issue authorization codes directly to customers. This is a common fraud tactic used to bypass security measures
Recommendation: Do not process the transaction manually. Instead, request an alternative payment method or advise the customer to contact their bank directly

A new customer places a high-value order without hesitation and requests immediate processing.

Red flag: Fraudsters often attempt large transactions before the cardholder reports the card as stolen
Recommendation: Verify the customer’s identity, use Address Verification Services (AVS), and assess whether the purchase aligns with normal buying behaviour. If something seems off, consider declining the sale

A customer repeatedly attempts transactions with different cards, finally succeeding with one.

Red flag: Fraudsters may be testing stolen cards to see which ones still work
Recommendation: Request identification matching the cardholder’s name. If anything seems suspicious, decline the transaction and ask the customer to contact their bank

An online order has a billing address that does not match the shipping address, and the customer requests rush shipping.

Red flag: Fraudsters often use stolen card details while shipping items to an unassociated address
Recommendation: Use AVS to verify billing details. If there’s a discrepancy, contact the customer for confirmation before processing the order

A customer’s payment keeps getting declined, but they insist that your system is at fault.

Red flag: Repeated declines could mean the card is stolen, blocked, or has insufficient funds. Fraudsters may pressure staff into overriding security protocols
Recommendation: Do not manually override the decline. Suggest the customer contact their bank to resolve the issue

A customer makes a purchase but later disputes the charge, claiming they never received the item or didn’t authorize the transaction.

Red flag: Some fraudsters abuse chargeback policies to get free products or services
Recommendation: Keep detailed transaction records, including signed receipts and shipping confirmations, to provide evidence if a dispute arises

Contact us immediately if you receive:

A suspicious call or email from Chase or a service partner with a sense of urgency

If the message seems questionable or threatening, do not respond. This could be related to a Chase fraud alert.

These situations are important to watch for as part of Chase fraud prevention. If anything feels unusual, reach out to us right away.

A delivery and/or return request that you did not initiate

If you did not submit a return request or order a delivery, we will not contact you about it.

An unscheduled in-person visit from Chase or a service partner

We will never show up to your address unannounced.

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Fraud prevention support

How can I prevent fraud?

Stop

Think

Protect

What are the most common types of fraud?

What are some warning signs of fraud?

Does it seem suspicious?

If it does, never disclose:

Fraud prevention FAQ

How can I protect my business from phishing scams?

How does Chase help businesses fight fraud?

What should I do if I think I am a victim of fraud?

What happens if Chase suspects a fraud on a transaction?

What is a chargeback, and why does it happen?

What should I do if I receive too many chargebacks?

What is the difference between a chargeback and a dispute?

Contact us immediately if you receive:

A suspicious call or email from Chase or a service partner with a sense of urgency

A delivery and/or return request that you did not initiate

An unscheduled in-person visit from Chase or a service partner

Don’t see what you need?