Tips to Help Your Business Avoid Fraud When Using Podium

The reason that some fraudsters are successful is because most people aren’t experts in fraud and scams. As a local business owner or employee, staying up-to-date with common scams is likely just one bullet point on your mile-long to-do list. 

Luckily, the Podium Risk Team has your back. Here are some tips to protect your business against fraud while you use Podium.  

Enabling Multi-Factor Authentication

Podium has recently implemented a new security feature that is now available to all accounts on the platform, MFA. Currently, Account Owners can choose to turn on multi-factor authentication at the organization level which will require all users to implement this feature. Once this happens, each time a user logs in to their account, they will be prompted to complete the MFA sign-in flow. A code will be sent to the phone number that we have on record for each user. If we do not have a phone number associated, it will be sent to the email address associated with the user. 

This new feature can be toggled on and off at the account owner’s discretion. However, we recommend that all accounts take advantage of this new feature in order to better secure your account.

Avoiding Common Phone Scams

Be cautious about answering calls from unknown numbers.

Be cautious about answering calls from unknown numbers or callers. If you do answer a call and the caller or subject seems suspicious, hang up.

Watch out for caller-ID spoofing.

Educate your customers! Make sure your customers are aware of the dangers of caller-ID spoofing and how to spot these types of scams. Encourage them to be cautious when answering calls from unknown numbers, and to never give out personal or sensitive information over the phone. If your customer reports receiving a phone call or text message from a number impersonating your business, encourage them to call your business number before proceeding with any transactions. 

To learn more about caller-ID spoofing, click here.

Keeping Payments Secure

Ask for a photo ID. 

One of the best things you can do to protect your business from credit card fraud is to ask for photo identification during the purchase process, particularly for high-risk activities (such as high-value transactions) that may pose a threat to your business. When using Podium, we recommend taking advantage of secure chat to collect ID pictures.

Verify sizable orders.

Although not all sizable orders should raise suspicion, it is important to be cautious when you encounter an unusually large order, as it could potentially be an error or fraudulent activity. If you come across an order that appears questionable, we’d recommend reaching out to the customer to verify the accuracy of the order. Pro tip: One of the quickest ways to do this is to use Podium to send a quick verification text. Here’s a template to try: 

Beware of questionable payment methods.

If a customer attempts to make a payment using a wire transfer, reloadable card, or prepaid gift card, it could potentially indicate fraudulent activity. These payment methods are commonly used by scammers to evade detection and accountability.

While we do not discourage accepting payments via prepaid gift cards, we do highly recommend utilizing our fraud prevention software to identify and deter fraudulent payment attempts. Furthermore, exercise caution when accepting payments from unfamiliar gift cards. If a gift card appears unfamiliar or differs from the ones you typically encounter, it may be counterfeit.

Limit the number of cards used per transaction.

If a customer uses multiple credit cards to finalize a transaction, it could be suggestive of fraudulent behavior. Be vigilant for instances where customers make several attempts with more than three cards before successfully completing a payment, or when they request to divide a transaction into smaller amounts across multiple cards. This behavior may indicate an individual trying various stolen card numbers in search of a functional one or intentionally keeping the transaction amounts below a certain threshold to avoid detection.

To safeguard against these kinds of fraudulent attempts, we advise monitoring instances where customers split transactions across multiple cards. Moreover, verify that the names on the cards being used remain consistent.

What to Do if You Think a Transaction is Fraudulent

The tips above will help you avoid fraud, but what happens if you run into a transaction that seems fraudulent?  Here are some steps to take. 

Inform Podium if you see an influx of scams.

If you see an influx of scams to your Podium account whether it’s through inbox messages or phone calls, please reach out to Podium to address these concerns. The Podium team will work to provide you with the necessary support and services for your business in order to help mitigate any risks.

Report scams to the appropriate authorities.

If you or your customers receive a scam call, encourage them to report it to the appropriate authorities. For the United States: Federal Trade Commission (FTC) or the Federal Communications Commission (FCC). For Australia: The Australian Communications and Media Authority (ACMA). For Canada: The Canadian Radio-television and Telecommunications Commission (CRTC). Reporting these scams can help authorities identify and take action against scammers.

And of course, if you have questions or concerns about a transaction, please do not hesitate to contact Podium’s Customer Support team or your Podium Customer Success Manager—our fraud team will be happy to look into any suspicious activity. 

More Questions? Contact Podium!

By educating yourself and your customers you can help protect your customers from potential fraud and scams. 

If you have questions or concerns about a potential scam or possible fraudulent transaction, please do not hesitate to contact Podium’s Customer Support team or your Podium Customer Success Manager—our team is here to help your business stay safe.