Internet fraud is rife – Digital Planet

This is rediculous Digital Planet. Why bother with https when you need an email as verification in the end.
 
OMG What next? Blood and Urine samples? Doubt they will last long with that policy in place :rolleyes:
 
I'd love to know how credit card fraudster get around the delivery address thing.
 
It's quite simple.

The whole credit-card payment process is flawed and could be simply fixed by allowing the card holder to authorise payment, rather than the merchant.

This would stop fraud on either merchant's or card-holder's part.
 
i feel for DP.. i used to run renegadexpress.co.za and we went down due to CC fraud... R50k's worth of goods.. and we where liable!


sad but true... untill CC's with PINs come out this is going 2 be the issue
 
from an e-tailer point of view. We do the same thing. To date only a handfull of guys complained (out of thousands of orders)

Thing is, its all about how you approace your customer. You cant simply "demand" these copies.

Call them up personally, explain why we need this strict security measure. Be polite and understanding.

Each month i personally block/reverse as much as R90 000 worth of transactions, that the Banks have approved, but proved to be a scammer and i end up reversing the amount.

Scammers:
a) dont have landlines, all prepaid cellphone numbers and 0860 fax's
b) insist on immediate delivery
c) address is always some delapidated building with no tenants.
d) ordering is very sporadic and always high value electronics/car audio
e) delivery areas are always in dodgy locations (hillbrow, yeoville, sunnyside pta, )
Nontheless, if a customer feels we'r being to strict, sometimes offer a discount in return for a cash/eft deposit.


Things are steering to 3d secure where the credit card owner has to type in a pin number. However, only 2 or 3% of card owners in the country (at present) are using this..

Bekdik: in theory yes, will require a HUGE upgrade on the banking system to do this. If they have to log in to authorise they might as well do an EFT then, cos we (the merchant) will still have to wait for the transaction to clear.
 
naeem said:
from an e-tailer point of view. We do the same thing. To date only a handfull of guys complained (out of thousands of orders)

Thing is, its all about how you approace your customer. You cant simply "demand" these copies.

Call them up personally, explain why we need this strict security measure. Be polite and understanding.
Click to expand...

Okay, that might help you seem less... idiotic. But still - encouraging people to send credit card numbers is just irresponsible.

Rather don't accept credit card payments, and insist on EFT, then.
 
naeem said:
Bekdik: in theory yes, will require a HUGE upgrade on the banking system to do this. If they have to log in to authorise they might as well do an EFT then, cos we (the merchant) will still have to wait for the transaction to clear.
Click to expand...

The cost isn't important as the savings in fraud would cover it.

I have been pushing Std to offer this since 1996, but as it's not money out of their pocket no thing's been done.

In any case I don't see that there will be enormous costs as the card holder would imply authorise a payment as per the merchants invoice and thereafter the transaction would proceed in the same way as if the merchant had requested it. This could be in parallel with the existing system and even at a small charge - I sure most people would be prepared to pay for the extra security. Remember, the problem works both ways - unscrupulous merchants can equally put charges through to card holder accounts. What I am suggesting stops fraud both ways.
 
bekdik said:
The cost isn't important as the savings in fraud would cover it.

I have been pushing Std to offer this since 1996, but as it's not money out of their pocket no thing's been done.

In any case I don't see that there will be enormous costs as the card holder would imply authorise a payment as per the merchants invoice and thereafter the transaction would proceed in the same way as if the merchant had requested it. This could be in parallel with the existing system and even at a small charge - I sure most people would be prepared to pay for the extra security. Remember, the problem works both ways - unscrupulous merchants can equally put charges through to card holder accounts. What I am suggesting stops fraud both ways.
Click to expand...

The problem is having a secure, authenticated channel to the card holder, and from the card holder to the bank to authorise the payment.
 
Just last week Personal Finance reported that fraudsters are attempting to intercept one-time passwords (OTPs) that are sent by banks to clients via e-mail. Nedbank executive for information security Peter Seider told Personal Finance that Nedbank only sends OTPs via SMS because it believes that cellphones are less prone to compromise than e-mail.
Click to expand...

The problem with that is that internet banking is universal - it's extremely useful to still be able to do banking when you're not in the country. (And not everyone has a cellphone, of course). If you tie it to a SA cell phone, it loses a lot of its usefulness.
 
How do you get the stuff delivered to a location that is not traceable?
 
bekdik said:
It's quite simple.

The whole credit-card payment process is flawed and could be simply fixed by allowing the card holder to authorise payment, rather than the merchant.

This would stop fraud on either merchant's or card-holder's part.
Click to expand...

Why is this not considered and if it has been considered, why is it not implemented?

It seems to me to be the best option.

I think DP's solution is ......... umm ............ stoopid.

It also appears that they are protecting themselves at the expense of their customers who don't know any better. Thats not somewhere I want to shop.
 
Fudzy, you asked the same question twice... are you looking to take advantage of Digital Planets cheap prices :p
 
I think Digital Planet should check their agreement with the Credit Card Company. They are probably in breach of the conditions.
 
However, the next day I received word from Digital Planet's credit controller, requesting that I e-mail him a photocopy of my credit card (both sides) and identity book. This is apparently standard policy for any item that costs more than R5 000. I refused this request and my order was cancelled.
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This is down right dangerous.what is the point of https then? utterly pointless. Guess i won't be buying anything from digital planet then.
 
Well I wont be buying any items over R5000 that's for sure. Then again, unless it's a speciality item it seldom makes sense to use a eShop rather than your local Makro/Hifi Corporation
 
bekdik said:
It's quite simple.

The whole credit-card payment process is flawed and could be simply fixed by allowing the card holder to authorise payment, rather than the merchant.

This would stop fraud on either merchant's or card-holder's part.
Click to expand...
On many UK shopping sites I have to go through a second authorisation with the bank on its site in order to prove to them I am initiating the transaction.
 
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