Fraud Risks

• Chargeback Fraud
  • Customers disputing charges after receiving services.
• Identity Theft
  • Use of stolen payment information to book expensive services.
• Friendly Fraud
  • Legitimate customers claiming non-receipt or dissatisfaction to obtain refunds.
• Employee Fraud
  • Staff manipulating fares or misusing company resources.
• Account Takeover
  • Unauthorized access to customer or driver accounts on platforms.

Regulatory Challenges

• PCI DSS Compliance
  • Ensuring secure handling of payment card data.
• Transportation Regulations
  • Compliance with local and federal laws governing operations.
• Licensing and Insurance
  • Maintaining proper certifications and adequate insurance coverage.
• Data Protection Laws
  • Adherence to GDPR, CCPA, and other privacy regulations.
• Consumer Protection Laws
  • Transparent disclosure of pricing, fees, and cancellation policies.

Chargeback Triggers

• Service Not Provided
  • Claims that transportation was not delivered as agreed.
• Unauthorized Transactions
  • Charges not recognized by the cardholder.
• Billing Errors
  • Incorrect charges or duplicate transactions.
• Quality of Service Disputes
  • Dissatisfaction with vehicle condition, driver behavior, or service delays.
• Miscommunication
  • Confusion over pricing, surcharges, or route changes.

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High-Value Bookings from New Customers

• Significant transactions without prior history.

Mismatch in Customer Information

• Discrepancies between billing details and booking information.

Multiple Bookings in Short Succession

• Rapid transactions using the same or different payment methods.

Unusual Routing Requests

• Requests for transport to remote or high-risk locations.

Repeated Declined Transactions

• Multiple failed payment attempts before a successful charge.

Last-Minute Cancellations with Refund Requests

• Frequent cancellations followed by refund demands.

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Business Verification

• Verify business licenses, permits, and certifications required for transportation services.
• Confirm physical address and operational facilities.
• Check compliance with transportation laws and safety regulations.

Financial Assessment

• Review financial statements for revenue stability and profitability.
• Analyze average transaction amounts and processing volumes.
• Assess the impact of operational costs on cash flow.

Risk Evaluation

• Examine historical chargeback ratios and reasons.
• Assess fraud prevention measures and security protocols.
• Review policies for cancellations, refunds, and dispute resolution.

Policy Review

• Ensure clear terms of service and pricing structures.
• Verify that refund and cancellation policies are transparent and accessible.
• Evaluate compliance with data protection and privacy policies.

Technology Assessment

• Confirm the use of secure, up-to-date payment processing systems.
• Ensure encryption and tokenization are implemented for data protection.
• Verify adherence to PCI DSS and other security standards.

Reputation Analysis

• Check online reviews and industry ratings.
• Investigate any history of regulatory violations or legal issues.
• Assess customer satisfaction and complaint resolution effectiveness.

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Sudden Increase in High-Value Transactions

• A company experiences a spike in expensive bookings from new clients, potentially indicating fraud.

Multiple Chargebacks After Event Services

• Clients dispute charges following transportation for events, suggesting dissatisfaction or chargeback fraud.

Unusual Payment Methods for Large Transactions

• Requests to pay significant amounts using untraceable methods.

Consistent Service Complaints

• Frequent negative reviews about no-shows or poor service, indicating operational issues.

Employees Manipulating Fares

• Staff altering charges or adding unauthorized fees to transactions.

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Business Operations

• What types of transportation services do you offer (shuttle, charter, ride-sharing)?
• How long have you been operating in the transportation industry?
• Do you serve local, regional, or international clients?

Payment Processing Methods

• What payment options do you accept?
• Do you offer online booking and payment through a website or app?
• How do you handle high-value transactions and verify customer identity?

Fraud Prevention Measures

• What security protocols are in place to protect payment data?
• Do you utilize any fraud detection tools or services?
• How do you verify bookings, especially for high-value services?

Regulatory Compliance

• Are you compliant with PCI DSS and data protection regulations?
• How do you ensure adherence to transportation laws and licensing requirements?
• Do you maintain adequate insurance coverage?

Cancellation and Refund Policies

• What is your policy on cancellations and refunds?
• How are these policies communicated to customers?
• Do you have procedures for handling disputes and chargebacks?

Customer Service

• What channels do you provide for customer support and inquiries?
• What is your average response time for resolving issues?
• How do you handle complaints regarding services or billing?

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Transaction Monitoring

• Implement real-time alerts for suspicious activities.
• Regularly review transaction reports for anomalies or fraud patterns.
• Monitor high-value transactions and frequent refund requests.

Compliance Checks

• Ensure continuous adherence to PCI DSS and transportation regulations.
• Stay updated on changes in industry laws and implement necessary adjustments.
• Conduct regular audits of payment systems and data security measures.

Security Updates

• Keep systems and software up to date with security patches.
• Implement advanced security features like encryption and multi-factor authentication.
• Train staff on the latest cybersecurity practices and data protection policies.

Merchant Communication

• Maintain open dialogue regarding changes in business operations or services offered.
• Provide resources and support for fraud prevention and compliance.
• Encourage reporting of any suspicious activities or security concerns.

Risk Assessment Adjustments

• Reevaluate risk parameters based on changes in transaction volumes or patterns.
• Update underwriting policies as necessary to reflect current risks.
• Monitor industry trends and seasonal fluctuations affecting the sector.

Customer Feedback Analysis

• Monitor reviews and feedback on industry platforms and social media.
• Address negative feedback promptly to improve customer satisfaction.
• Use feedback to identify potential areas of risk or concern.

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