Scammers are continuing to target independent garages using a ‘card not present’ method in which parts, often tyres, are purchased over the phone using stolen credit card details, the Independent Garage Association (IGA) has said.
The IGA has received multiple new reports from members across the country.
An IGA spokesperson said: “This is a very common scam which happens nationwide on both credit and debit cards, and the RMI Legal team advised that they are continuing to receive queries regarding businesses losses due to tyres purchased with stolen credit card details.
“In previous attempts at defrauding garages, goods such as vehicles have been collected within 24 hours of the fraudulent purchase.
“Further purchases are also attempted before the credit card company charges back the outstanding balance, leaving the trader with no goods/vehicles and no payment.
“A new development in a recent instance is that the card details used to conduct the purchase have been stolen from another garage business, who shared them via an online transaction to purchase parts.”
Garages are urged to remain vigilant when conducting card transactions in person, online and via phone.
Where transactions over the phone are necessary, Barclays bank recommends businesses obtain the card number, card expiry date, card security code, cardholders full name, address and phone number.
In addition, the delivery address and name of the person receiving the goods should be noted, along with the gross transaction amount.
Commenting on Garage Wire recently, reader Brian Waite said: “They got my garage about five years ago, some guy in London bought some electrical goods and paid by card.
“A Local courier to me picked up the stuff to deliver to London, before the driver got there he got a call to say the shop was closing and could he deliver to a block of flats.
“As he arrived at the flats a guy came out and signed for them and then put it in his car and drove away.
“The driver thought it was odd so he took the reg number.
“I got stung for £1700 and the courier got stung for the delivery.
“We called the police with the reg number but the guy said lots of people use the car and it wasn’t him, so no action taken.
“I lost my goods and then got the charge back from the credit card company for the goods.
“Don’t allow card purchases now unless the person is on site with the pin number for their card.”
The IGA recommends garages do not proceed with any transactions that seem suspicious, either in person, online or via telephone.
IGA members can report suspicious activity, to the IGA member helpline on 0845 305 4230.
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