Testing Card for Authorization? Vendor Fraud?

[Anonymous]

I just lost a supplier this morning. Yesterday I called to check on an order and the rep mentioned an order I had made the previous Friday. I said that I had made no such order. He said that the order included my name and a credit card which was declined. I explained that the card number was an old one I don't even use anymore, I don't even order those particular products anymore, haven't for over a year and haven't used that particular card for over a year. I told the rep that I was glad the card number was declined, he checked my legit order(via the card I actually use) and that was that. I then called my Wife, asked her to check with the bank that issued the card because I was concerned about any stolen information and about how it had been obtained. They had no info since the account was closed, so she texted my supplier. She simply asked for them to call her. Well, the owner did call her, shouted her down, wouldn't let her get a word in, and when he was through with his tirade about our "fraud", he hung up on her. I've always had to walk on egg shells with this guy but, now I suppose that business relationship is over.

My question is; why would someone test the card using my name, actually order a few thousand in products, and request that they be shipped to ME? As to my lost supplier, I have no hope of resolving that.

[coldfusion]

I can think of a few potential reasons for the bogus order:

a) potential of likelihood of successful porch piracy

b) let the order get processed validating that the card worked, next day place another order (from them or elsewhere) to be directly delivered to a "job site". 

c) former close associate who you let use the card in your behalf trying to settle a score by causing you some angst? 

As for the supplier, if you're really done with them and have no concerns about sticking a fork into the business relationship you can consider spreading the word about why they are a former supplier. 

[Anonymous]

Porch piracy would be unlikely as one of the items ordered would exceed 1000# and the others would weigh around 400#

The only people who have used that card are my wife and myself. Answer (b) would be plausible though.

As to the supplier, I had heard bad feedback on them from others but, I did manage to stay with them for about 2 1/2 years of grief.

I have another supplier who isn't rude, actually answers the phone on the first try(instead of 4 or 5), and delivers for free.

[disdreamin]

Is there any chance this was a duplicate order of one from way back when, somehow? Something stuck in cache and just popping up? I know it sounds crazy, but I've had texts like that, they showed up many months after they were sent. I know it's unlikely but it might be worth taking a peek at your old invoices to see if it's an exact duplicate of anything you've ordered from them previously with that card.

As far as the lost relationship, sounds like they are better off gone. I'd put in writing what you stated, including showing information about calls made to your bank about the card and potential fraudulent charges. I'd post it to them (certified, return receipt requested) in case they try to come back at your for those charges.

[Anonymous]

Yes, I thought about that; because I have ordered those items way back when. Good advice. Will do.

[Anonymous]

Ok, I sent the message notifiying them on which days I contacted the bank and the particulars about my actions in the matter. It's recorded in a phone text message and in my personal email. Now, i'm done.

[USMC_Winger]

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@Anonymous wrote:

I just lost a supplier this morning. Yesterday I called to check on an order and the rep mentioned an order I had made the previous Friday. I said that I had made no such order. He said that the order included my name and a credit card which was declined. I explained that the card number was an old one I don't even use anymore, I don't even order those particular products anymore, haven't for over a year and haven't used that particular card for over a year. I told the rep that I was glad the card number was declined, he checked my legit order(via the card I actually use) and that was that. I then called my Wife, asked her to check with the bank that issued the card because I was concerned about any stolen information and about how it had been obtained. They had no info since the account was closed, so she texted my supplier. She simply asked for them to call her. Well, the owner did call her, shouted her down, wouldn't let her get a word in, and when he was through with his tirade about our "fraud", he hung up on her. I've always had to walk on egg shells with this guy but, now I suppose that business relationship is over.

My question is; why would someone test the card using my name, actually order a few thousand in products, and request that they be shipped to ME? As to my lost supplier, I have no hope of resolving that.

...

Yes, I thought about that; because I have ordered those items way back when.

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TL;DR:  Wash your hands of this vendor, but keep an eye on your credit card for future unauthorized charges from this vendor due to duplicate orders.

The most likely scenario is not fraud -- but human error in operating or developing database software.  It's common in small businesses.  Most likely, the database software your vendor is using either failed or had errors, and someone "fixed" the problem (although incorrectly) by either restoring the database data from an old (ancient) backup file or by altering the database queries and/or data.  The next most likely scenario is your vendor's unsuccessful migration or upgrade from one database software application to another with "bugs" that have yet to be discovered (by your vendor) and fixed.

Restoring the database data from an old backup file (dated before your current credit card was added to your billing account) could result in an unfilled order of yours dated Mar. 26th -- but way back in 2020 or 2019, not this year.  An employee sees the unfilled order sometime between last Friday and yesterday, charges the old credit card before filling the order, finds out the old credit card was declined, marks your order as "DO NOT SHIP," and tells the boss.  When the boss gets a text from yet another "problem customer," he chews her out on the phone and hangs up on her, because he really, really doesn't want all these "bad" customers.  (He's probably identified several new "bad" customers recently due to the data errors.)

Recent altered database queries or data could also end up with the same result I just described if the database software wasn't designed correctly.  For example, when your vendor uses either Excel spreadsheets or non-normalized data stored in a relational database for his customer orders.

Ultimately, what happens in these scenarios is the vendor never finds the data errors until he hires a database expert to fix the problems.  Without the needed corrections, the vendor's business will suffer some serious financial difficulties from filling duplicate orders and from his good customers fleeing his business.

My advice is to watch your current credit card for additional unauthorized charges from this vendor.  In the future, if you get deliveries from this vendor that you haven't ordered, refuse delivery of the package so that you aren't responsible for shipping the package back to him.  I would also advise never using this vendor again, but you've already removed yourself from that equation.  (Good job!  He's obviously not worthy of your business.)