Best Practices, Policies to Combat Return Fraud
- Fraudulent Returns Cost Canadian Retailers Between $1.1B and $1.7B in 2015
One big change most retailers have made is introducing a policy requiring proof of purchase, he says. Five to 10 years ago, it was very easy for a return fraudster to go into a store, steal an item and, without any bill, return it for cash. "There was a time when these organized rings were hitting us for millions of dollars, so most retailers have made a change that you can't just come in without a bill and get cash. At Sears Canada, we said, if you don't have a bill, you get a merchandise gift card, which means you cannot get cash for it. You'll see that with other retailers, as well: it's very difficult to get cash now," he says.

Retailers should also have extensive exception reporting tools, Berezowski says. "We monitor all types of refunds and look for trends. A fraudster doesn't use his own name but often uses the same information: the same address but a different name or different phone numbers but the same address. Through software we've developed, we're able to monitor those folks and try to identify them. In most cases the people doing return fraud are hitting store after store, but without that exception reporting it's hard to see the pattern."

Some fraudulent transactions, he says, can be prevented by insisting that returns always be made to the same method of purchase. This is particularly important with online returns, he says. Online shoppers sometimes use false credit cards to buy an item and then request the return to a different card. Online retailers should make sure a credit goes back to the same credit or debit card used to buy the item to prevent this kind of fraud.

For higher-value items, he says, one method of preventing fraudulent returns is to introduce a restocking fee. Knowing they will have to pay $25, for example, and not receive the full credit, will deter many criminals.

It's also important to have software at the POS that will track activity by product, geographic area or purchase method. "It's critical for retailers to have the alerts and the awareness to know where to target their efforts. And if retailers don't make that investment in technology, knowing the bad guys are technology-savvy, they're behind the curve," he says. canadiansecuritymag.com

Account Takeover Fraud Growing in "Leaps & Bounds" across Canada
Strengthening Security to Counter Account Takeover Fraud
Even back in November 2015, British Columbia-based NuData Security was reporting that between May-June 2015, nearly half a billion "aged" accounts were flagged with potential fraud, up 28 percent from the first quarter of 2015. "This highlights the growing value fraudsters are seeing in using aged accounts in an effort to circumvent traditional fraud detection systems that place a level of trust in an aged authenticated account."

With the adoption of EMV, credit card fraud is being dropped in favor of account takeover fraud. "Instead of merely stealing your credit card number, today's fraudsters are moving to full-blown account takeover, partly to thwart EMV chip-card technology but mainly to maximize their return on investment.

Financial fraud is one of America's largest growth industries. In addition, the Federal Trade Commission (https://www.ftc.gov) states that identity theft is escalating at 40 percent a year and is particularly problematic compared with more traditional forms of financial fraud.

Best Practices for Preventing Fraud Losses read more here. co-opfs.org

Canada Acts to Prevent Importation of Counterfeit Goods into Canada
The new rules provide the Canada Border Services Agency (CBSA) with the authority to detain suspected counterfeit and copyright infringing goods, while allowing the rights-holder time to pursue civil remedies. The new measures strictly prohibit importing or exporting counterfeit and copyright-infringing goods. Two important features of the Canadian regime are: (i) CBSA officers now have the authority to detain goods they suspect are counterfeit or copyright-infringing; and (ii) the establishment of a "request for assistance" (RFA) process to allow the CBSA to disclose information and samples of detained goods to a rights-holder. This detention and disclosure by the CBSA will assist rights-holders in obtaining relief including through legal action in the courts under the Copyright Act and Trade-Marks Act. natlawreview.com

Toronto pot dispensaries open for business despite last week's raids
Last week, police raided 43 dispensaries in an investigation dubbed 'Project Claudia.' 90 people were arrested and close to 200 charges were laid in connection with the raids, including 71 criminal charges. But many of the businesses raided by police have already reopened their doors, and new dispensaries are opening. They are checking for government issued ID at the door to make sure customers are over 19. citynews.ca


Vancouver files injunctions to force closure of 17 pot dispensaries
More than 100 unlicensed pot shops were told to close their doors by April 29, and a whopping 162 of 176 stores that applied for business licences were rejected. Most of the applications failed due to a rule barring dispensaries from operating within 300 metres of each other, or of schools, community centres and youth facilities. ctvnews.ca

Gangs moving criminal activity online in GTA, Peter Sloly says
Gangs in Toronto are using social media to conduct criminal behaviour that used to happen only on street corners, said Toronto's former deputy police chief. In some cases, disrespect online has led to violence later, Peter Sloly told Metro Morning on Wednesday. Sloly, now an executive director at Deloitte who is focused on preventing cyber crime, said gangs across North America, and in Toronto, are operating online because it's harder for police to track their activities there. He said gangs use the Internet to intimidate each other, send messages, share information, plan operations, carry out credit-card fraud and provoke violent incidents that occur on the street later. canadianfraudnews.com

Consumers turn to booming black market for cheap cellphone deals
Pricey cellphone plans in many Canadian provinces appear to be driving consumers toward a booming black market business. At last search, online ad site Kijiji in Toronto was crawling with advertisements for a bargain Koodo or Fido phone plan - just $48 a month for unlimited Canada-wide calling, texting and a big 5GB data package when you buy through a third party. Telus actually charges almost double the price - $90 a month - for that Koodo plan in Ontario as well as most provinces. "Customers should use caution when exploring plans online that aren't being offered directly through one of our official channels," said spokesman Andrew Garas. "Sharing your personal information can result in fraud." canadianfraudnews.com

Apple Pay Expands In Canada

Sephora expanding Greater Toronto Area operations to dominate market share

Krispy Kreme rolling out a Canadian comeback with 50 new stores

MEC to Open 1st Tri-Cities Location - Looking for first LP senior leader

Canada Goose to Open 1st Freestanding Store

Saks Fifth Avenue to open its third Canadian location, in Calgary, Alberta

Le Château to close another 40 stores across Canada over the next three years