7 /12/2019 Fraud Detection & Protection Series: Red Flags Last-Minute Bookings

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ASCENT PROCESSING BLOG

Fraud Detection & Protection Series: Red

Flags Last-Minute Bookings
Finding the right balance between making the reservation and
payment process easy and making it as secure against fraud as
possible, is something that we encourage each property manager to
find for your business. When you are contracting directly with the
acquiring bank, as you do with Ascent, you have the security of
knowing that your funds are backed by one of the biggest banks in
the US, and therefore, we have access to resources that can help you
determine what the right balance is for you. Successfully assisting
you in identifying potential cases of credit card fraud will help
protect your business.

One common "red flag" fraud indicator that we see in our industry is
from last-minute bookings because fraudsters can book, stay, and
leave before the chargeback comes through. Please be more
discriminate and thorough with these last-minute bookings to
protect yourself. You can always call for a Code 10 authorization if
you are suspicious to gather more information and an authorization
You can also consider stating a preference for accepting different
forms of payment (ones that can clear the bank before the stay and

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7 /12/2019 Fraud Detection & Protection Series: Red Flags Last-Minute Bookings

not be disputed after the transaction) if the booking is within 7 days

of the stay. We suggest speaking to your bank about what options
would work best for your business.

Fraud Example from an Actual Merchant

"A potential guest emailed us last minute to book 16 nights during
high season at one of our properties. They provided their credit card
number in the email, which was a red flag to start with. Then a few
days later, emailed us that his family was in the hospital (wife in
intensive care) due to a traff¡c accident.
Because of this accident he stated that his original credit card was
lost and could we cancel their reservation and credit his other credit
card?"

This merchant was right to trust their intuition that something was
off with this transaction and to contact us. We recommend reaching
out to the cardholder with additional questions any time you suspect
something is not right. Your true guest will appreciate the extra
security measures. Also, always issue refunds to the exact same card
that was initially charged. Do not refund by cash or check or to a
different card. Even if the card originally charged has been closed or
compromised, the issuing bank can get the funds back to their
cardholder. And having the refund go to the same card is the only
way that you can reliably prove you've refunded the cardholder.

As with this case, fraudsters will sometimes charge to a stolen card, 'ir.rl'
then claim to have an emergency that causes them to be unable to
make it on their vacation, and ask that the refund go to a different
card - one that is theirs (not stolen). lf you go along with their
request, when a fraud chargeback comes through on the stolen
card, you are left holding the bag, because you can't prove the
refund.

ln this case, when the authorization was called in, the card had not
been reported stolen yet. The merchant DID refund the guest, but to
the original card, which later was determined to have been stolen
from Australia.

Additional Potentially Suspicious Transactions

-Customers who refuse to sign and return your rental
agreement/confirmation letter
-Customers who want you to charge the card in excess of the total
amount due, and to forward the excess funds to a third party
-Customers who provide multiple card numbers for the same stay
-Requests for services or merchandise you do not offer
-Customers who book with little or no regard for value or price
-Stories that don't match
-Customers using someone else's card
-Cards that have an incorrect starting digit by card type:
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7 /12/2019 Fraud Detection & Protection Series: Red Flags Last-Minute Bookings

American Express cards start with 3

Visa cards start with 4
MasterCard cards start with 5 and 2
Discover cards start wlth 6
-Anything that triggers a negative gut feeling!

All of these tools, combined with security best practices, are your
premier protection against fraud. Be proactive now, rather than
reactive later, about fraud detection and fraud protection. Know
your guests and trust your instincts. Contact Ascent with any
questions you may have regarding fraud protection or additional
ways to protect your business and your money at
j¡fe@ascenlp-to.cessi ng.com Im a i lto: i nfo@ascentprocess.ing.com]-'

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