Freezing Out Fraudsters

Problem: Omaha Steaks wanted to prevent as many fraudulent orders as possible from shipping.

Solution: Instituted a comprehensive fraud-protection program, and it hired fraud-prevention professionals.

Results: Saves about $1 million annually from catching fraudulent orders before they ship and in credit card chargeback fees.

Ron Eike, director of operations for food purveyor Omaha Steaks, called it his company’s “million dollar problem.” How to prevent fraudsters from using stolen credit cards and other illegal means to buy the company’s gourmet goods?

Omaha Steaks established in the early 1990s a comprehensive fraud-protection program, which includes technological means of flagging suspect orders. It also hired loss-prevention specialists.

Eike spoke about his company’s defensive actions during his seminar “Catching Fraudulent Orders Before They Ship,” held at the National Conference on Operations and Fulfillment in Gaylord, Texas, in April. He said Omaha Steaks’ fraudulent orders share similar characteristics: