fraud alertIt’s an excellent idea to choose to venture into outsourcing because of minimum wage.  However, an important thing to remember is to carefully choose the company you will be handing your information over to.  Digital crime is now prevalent and you want to be sure to keep your data secure.  Here are the main types of fraud your business and your outsourcing partner should guard against:


  1.  Friendly fraud or chargebacks

Though it’s called friendly, it’s actually nothing of the kind.  The perpetrator in this form of fraud is the customers themselves.  What happens here is that customers purchase a product, or more often than not, a service, using a credit card.  Afterwards, once they’ve made use of the service or product, they make a call to claim that their credit card was stolen, and demand a chargeback.  They may partner with a middleman to whom the product is sent to and who then ships the product to them.  In the end, they keep the product or service even though they didn’t pay for it.   


  1.  Clean fraud

The clean fraud, like the friendly fraud, is not really clean at all.  It can rarely be uncovered as the criminals leave almost no clues of their crime.  Criminals here have become experts at discovering the security systems adopted by a business and finding loopholes that allow them to circumvent their protection.  In addition to that, they use stolen credit card details to make the purchase, also by thoroughly studying the behavior of the credit card owner first.  


  1.  Identity theft 

Identity theft is one of the most commonly used and has received the most publicity.  This is illegally obtaining a person’s personal details like full name, credit card information and birth date.  Cybercriminals utilize the stolen data to make transactions and purchases under the victim’s name.  

Identity theft is done in either of two ways.  Phishing is when you receive spoof emails pretending to come from a legitimate company and when you click on the link in these emails, a virus is sent to your computer that retrieves your personal information.  Pharming is for bogus websites that copy a certain business and these false sites are cleverly made to look the like the genuine ones.  


Another blog on securing your data: Before You Outsource, Secure Your Data With These Tips


  1.  Triangulation fraud

This type of fraud combines several identity theft methods.  Using a phony online shopping website that usually offers top products for very low prices, customers are tricked into signing up and providing their personal information and credit card details.  The criminals would then use the data stolen from the customer to make a real order for the customer’s items on the genuine website.  This ensures the customer receives his items and remains unaware of the crime.  After which, the real purpose of the crime is carried out.  The criminal starts making other purchases using the stolen credit card information.  


Now that you know what to guard your business against, it’s important to take steps to protect your information.  When you’re outsourcing, one of the best ways to keep your information safe is to partner with a reliable BPO service provider.  Taking You Forward is a rising BPO company with expertise in customer care, technical support, sales and back office administrative functions.  Contact us today.