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In Tandem

Stop credit card fraud by pairing solid policies with new technology.

This story appears in the May 2004 issue of Entrepreneur. Subscribe »

When retailer Mark Berkowitz, 49, asked a phone customer for thename and number on his credit card, he knew he was being scammed."The guy said his name was Patricia," recalls the ownerof DerbyAppliances Inc. in Edison, New Jersey, which sells appliancesand electronics. "If I hadn't questioned it, I would havebeen liable for the cost."

U.S. retailers get ripped off to the tune of about $1.5 billionper year due to credit card fraud, says Dennis Behrman, a researchanalyst with Financial Insights, a Framingham, Massachusetts,research firm. Protecting yourself without alienating customers, hesays, requires a combination of new technology and good businesspractices, including:

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