A quick ecom fraud check list

Having run on line ecom for the last 2 years I\’ve gained some experience and in exchange with others have generated the following fraud check list:

Don\’t bother – reject – it\’s fraud (on-line / on phone line)

Customer doesn\’t know the cardmember ID (CID) found on the back of the card, indicating that they probably don\’t have the actual Card.

The order is repeated or customer asks that you try lower the amounts when a decline message is received (I always look at the declined messages first).

The order is repeated with- or customer uses different expiration dates when initial attempt fails

An order is split (should be a single large order) or the customer attempts to place a large order using several credit cards to obtain the total amount and/or may use different cards, etc.

Never even dream of accepting or using an authorization center number given by a customer.

Shipping and billing country are different if you dare to accept different addresses which is likely if you run a gift, present or gadget related site.

Reverse IP look up shows anonymous site or an anonymous proxy is used

Fraud Countries: Nigeria, Indonesia (be vary of Singapore and Malaysia) I reject these.

Highly probable fraud

Order is split up to avoid paying \”import taxes\” and/or \”duty fees\” – reuest banktransfer instead

If you request personal information the customer hesitates or there is only scarce information forthcoming.

A purchase of a large quantity of a single item, specifically expensive ones
there is little or no concern for return policies, warranties and/or rebates.

High Fraud Countries: Romania, Singapore (people from Indonesia will use this and still get it), Ghana, Ukraine, Uganda, Hungary, Belarus, Estonia, Latvia, Lithuania, Slovak Republic, Russia, Yugoslavia, Macedonia, Phillipines, Thailand, Malaysia

Initial or follow-up order is more than 3x your average order

Shipping and billing address or country are different without reason


New order or customer tries to make a very large credit card transaction

Customer repeatedly sends e-mail messages requesting confirmation of shipment

The order contains several more expensive items, that are not related / appear random

Customer details entered in all upper or lower case

Cell phone number in combination with \”free\” e-mail account and, to top it, a PO box is used

The order ust be rushed regardless of cost

Some tips:

There is no reason why you cant try to contact a customer and ask for more details or talk to your credit card processor.

It also possible to set a merchant account to pre-authorisation. This requires that each order is accepted within 5 days (manualy) or rejected but there are no transaction fees!

If it sound to be too good to be true it isn\’t.

Be cautious it is cheaper to reject an order and ask for a banktransfer than to loose the whole lot.
Oh and on checks, make sure you know what your bank is doing. This is no joke they most of the times don\’t. When you cash in a foreign cheque and it\’s done under \”negotiation\” you may get the money faster but if the cheque bounces it\’s gone as well.

Just hope it helps

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