> Business advice  > Business relations  > Identity fraud

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• Mail
• Information Security
• Employee Identification
• Customer Identification
• If Suspicious

If your business accepts payment other than cash, or offers goods for hire or lease, it is particularly vulnerable to identity fraud. If your customer is not who they claim to be, your business could be left out of pocket.

Identity fraud is when someone uses a false identity for personal gain or to commit a crime. They may have created a fictitious identity by falsifying proof of identity documents. Or they may have ‘stolen' the identity from a real person, either living or dead.

Identity fraud is now epidemic worldwide. An identity thief may be a customer, employee, or colleague. They may be in your store, on the phone or halfway across the world on the Internet. Whether you operate a small local store or are part of a multi-national company you need to identify possible fraud risks and take steps to prevent them.

Remember you not only need to protect your business from financial fraud, you also need to safeguard your customers and employees personal information.

Consider the following and take steps to protect your business:

Mail

Both incoming and outgoing mail can provide a treasure trove of personal information for the identity thief.

• Put a lock on your letterbox or use a post office box for receiving mail.
• Ensure your letterbox is large enough to cope with the volume and size of your mail so that it is not accessible to others.

Information Security

Staff should be aware of your security procedures for handling customer and staff financial/personal details.

• Document security procedures and monitor for any misuse of information.
• Keep all sensitive information in a secure place and restrict staff access.
• Follow secure accounting procedures and use an external auditor.
• If you take a manual imprint of a credit card, make sure the black carbon sheet is destroyed.
• Provide facilities to enable the secure disposal of sensitive information.
• Ensure your computer security is adequate. Continually update your virus protection software.
• Use password-protected facilities to store sensitive information.
• Follow the conditions in the merchant agreement with your financial institution. You may need to change your work practices to limit your liability.

Employee Identification

Depending on your business, you may need to validate the identity of your staff.

• Always conduct referee checks for new employees.
• Consider checking credit and criminal records for positions of a high level of trust.

Customer Identification

It is important that staff follow security procedures even in difficult situations.

• Don't be rushed when taking orders from new customers. Request their full contact details. Those who provide only a post office box address and a mobile phone number may be difficult to trace.
• Request the credit card security number for phone or Internet orders (usually a four digit number printed above the card number or on the security strip). This is an indication that the card is present at the time of transaction.
• Consider implementing a policy that requires photo identification for all credit purchases above a set amount.
• Don't be pressured by aggressive customers. Staff should be trained to deal with difficult situations.
• Be alert to forged or altered credit cards.

If Suspicious

It is important staff understand and follow procedures if they are suspicious of fraud.

• Ask for photo identification such as a driver's licence and check the details match the credit card.
• Record the identification (eg driver's licence) details on the sales voucher.
• Hold the card while completing the transaction.
• Call the relevant credit card scheme for authorisation.
• Report all suspected fraud to the relevant financial institution/s and police immediately.

For further information visit the South Australian Police website.

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