How does one detect fraud anyways? And when detected, what should one do about it????
thnx,
me :-P

Ip in Indonesia, CC number from USA, Addres in France...hm this would be suspicious, also double-check orders with hotmail/yahoo like free addreses, orders prepaid for full year (for most expensive plan)..etc tons of things too look for.. :)

uh yes, second part when you detect it decline order, contact your cc processor if needed (3rd part proc) or if you are not sure if the order is ok, ask "potential" client to fax you signed contract or some ID..

Yeah, if the Order looks suspicious, contact the client either by email or phone.

yeah , gut instinct is usually right....if something doesnt sit right dont fill the order

HI!

What will happen if the fraud transaction was accepted? and you are paid by the Merchant Processor, What are the consequences that might happen?

Yes, sometimes a fraudulent transaction will get through. If that happens, sooner or later the real cardholder will end up contesting the charge.

If you're lucky, you will be sent a "clear copy request" and be allowed the opportunity to either clarify the issue for the cardholder, or in the case of fraud, simply process a refund.

If you're unlucky, you will simply see it show up in your account as a chargeback. Too many chargebacks will jeopardize your account, so it's best to avoid them as much as possible. Not to mention the fact that you will also get zinged for a chargeback fee.

Vito

If you think something looks suspicious and you want to go with them anyway you should definately NOT prepay anything. Just try them out by paying for 1 month.

I found that many frauders use anonomous proxies that have one goal, to protect your identity, and it works well..

the next flag is.. the person uses all lower case for everything, EXCEPT when they put the stolen credit card in, everything is capitalized where needed... :-/ I guess its too hard to "reach" with the pink and make the signup look legit.. thats ok though, thats good for us, we get to NOT serve them..

After a few fraud orders, they stick out like dogs balls on a goldfish :)

Originally posted by seg fault
After a few fraud orders, they stick out like dogs balls on a goldfish :)
I'm just trying to create a visual on that in my mind... :eek:

Vito

Originally posted by vito
Yes, sometimes a fraudulent transaction will get through. If that happens, sooner or later the real cardholder will end up contesting the charge.

If you're lucky, you will be sent a "clear copy request" and be allowed the opportunity to either clarify the issue for the cardholder, or in the case of fraud, simply process a refund.

If you're unlucky, you will simply see it show up in your account as a chargeback. Too many chargebacks will jeopardize your account, so it's best to avoid them as much as possible. Not to mention the fact that you will also get zinged for a chargeback fee.

Vito

Hi!

I think one transaction get thru and I think it is a fraud. What do I need to do? Just wait?

You mention that my account will be jeopardize with many chargeback, and you said that I must avoid them? BUT How can we avoid them? They just visit our site, charge a card, processed by merchant, then we are paid....Any protection in our side?

Thanks

I would contact the customer (cardholder) directly to confirm that the order is in fact legitimate. Preferably by phone (at least that's how I would do it). if you're still suspicious, ask them to fax you a photocopy of the front and back of the credit card, and possibly some form of photo ID. If they get annoyed that you're asking this, just politely explain that you need to ensure that orders are valid - to protect you, and ultimately to protect the cardholder as well.

If you are still unsure about the order and think it is fraud, just process a refund.

Vito

If it looks like fraud, smells like fraud, and farts like fraud -- it is fraud. :) Actually a while ago we got an order that had an American address but when they filled in the country name it said United Kingdom. Called the lady on the card said she didn't know who it was and we filed a report. So, it can either be really obvious or really not obvious.

Just look up the originating IP, contact their isp and try and pry as much information as you can. Sometimes it works, sometimes not.

Originally posted by pwh


Any protection in our side?

Thanks

None.

The ONLY protection you have is getting good at spotting the fraud when it happens.

I've came to the conclusion that all fraudsters are idiots. I mean, they sign up for 5 accounts at a time, all using similar info. My method of detecting fraud, which never fails, consists of: Checking the IP vs client's location, doing a whois on the domain, checking where they came from. If you have any doubt, just call the phone number provided.

Well I just got duped on a fraud order... IP, address, zip code and area code all matched the listed address.
only thing off was the email , a .to address (which I never heard of)
So I went ahead and created...
Next morning I go look to see if clients doamin propagated and I get this page w my IP and looks like a ebay login page.

10 mins later after search here, i fnd out about a ring doing this and killed account :(

Luckily the CC was never charged in first place so no fear of a chargeback ;)

I wish there was a resource where you could do checks for all aspects of fraud in 1 location/page

you can... at http://www.codir.com/