As winter approaches, Canadian auto shops face a growing threat beyond icy roads: MOTO tire fraud. The scheme, targeting high-demand winter tires, has led to an alarming 89% increase in fraud losses for auto shops nationwide.
The Rise of MOTO Tire Fraud
MOTO (Mail Order/Telephone Order) tire fraud involves criminals using stolen credit card information to purchase tires, exploiting the seasonal demand surge.
Maria Cameron, Director of Risk Management at Moneris, Canada’s foremost payment services provider, explains, “With provinces like British Columbia and Quebec mandating winter tires, fraudsters are targeting these high-ticket, in-demand items for easy resale.”
Protecting Businesses Against Fraud
As auto shops prepare for the winter tire rush, implementing robust fraud prevention measures is crucial. Cameron advises:
- Avoid accepting payments over the phone from unfamiliar customers.
- Use secure payment terminals for in-person transactions.
- Implement online payment solutions with built-in fraud prevention tools.
“Much like preventative vehicle maintenance, businesses need to adopt proactive fraud prevention strategies,” Cameron emphasized. “Using solutions with integrated fraud prevention tools can shift chargeback liability to card issuers, minimizing losses for your business.”
Moneris offers various secure online payment options, from integrated website checkouts to request-for-payment solutions. These tools help validate customer identities and protect businesses from fraudulent activities.
Auto shop owners are encouraged to stay informed about the latest fraud trends and to report any suspicious activities promptly to their payment processor. By remaining vigilant and implementing these preventive measures, Canadian auto shops can better protect themselves against MOTO tire fraud and ensure a smoother winter season for all.
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Fear mongering and misinformation has been rampant for a long time especially regarding “winter tires in BC”.
In BC, there’s been a slight increase in awareness as other provinces catch on. The misinformation is troubling: in BC, factory OEM tires are often misrepresented as “winter” tires.
Only in this “woke” province are all-season tires considered sufficient for winter conditions by legislation, like BC is California.
Both the media and the government play a role in spreading this misleading narrative. As a result, many BC residents are hesitant to switch to true winter (snow) tires, leaving them unprepared for real winter driving conditions.