Sourcing City News has been inundated with warnings over suspected frauds recently. Some have indeed gone onto to be confirmed. We obviously hate hearing that any distributor or supplier has lost money in this manner.



With so much activity around, it seems everyone needs to be diligent. The banks are regulated for money laundering purposes by ‘Knowing your customer checks’ (KYC), and the majority of credit card companies will debit back fraudulent transactions taken online or over the phone (unless you have taken out fraud protection or subscribed to 3D Secure) where the transaction turns out to be fraudulent.



An excerpt from Paypal’s site says:
When am I liable for a transaction? As an online merchant, you are liable for every payment you receive. In the brick-and-mortar world, merchants are not liable for credit card fraud when the card issuer authorizes the transaction and the store owner gets a valid signature. In the online world, merchants are responsible for all chargebacks and fraudulent transactions. That means proper security is your responsibility, not the bank’s.”



The message is clear – Be diligent