Monday, October 27, 2008

10 Signs of Online Credit Card Fraud

As the owner of a long series of online shops, I have learned with difficulty - from experience - that online criminals who are constantly trying to take advantage of the easy navigation for the purpose of committing fraud in the network.

For consumers whose credit card used online fraud, no losses. False accusations almost always comes back. But for a network of retailers, which linked to the processing, does not help.

If it is a scam, you receive the payment. You are in the order the goods shipped, and the network charges your card processor.

The payments were never comfortable. In the early days I had my share. But after much grumbling, I decided to examine what financial expert and radio talk show host Dave Ramsey as "stupid tax".

Then I have my opinion, to learn from them, I would not keep paying taxes stupid. "

I started as the list each payment, I was more than 12 months. I carefully examined in search of patterns and similarities. Therefore, I have the security and control, the well to a large extent reduce the losses due to fraud my shop.

I continue to bite, but very rarely in those days.

A step that contributes most to reduce fraudulent orders for me and my business is to eliminate the dispatch of any other place than in North America. I know that this is a dramatic step. But I have no doubt, be really loses about lawful activities of foreign customers, it is my experience that most fraud comes from abroad.

And my experience is not unusual. According to a recent study I saw, with CyberSource, said that the fraud rate on orders from abroad four times the volume of orders in North America. The contracts have no place other than the United States and Canada helps eliminate many problems.

Nonetheless, almost every day, some thieves even try to. Most of them are criminals trying to whether a credit card number, they are still very good. It will place an order and give the ship in the U.S.

Here I Top-10-proposals for catching fraud before the completion of the transaction. Since some of these options you have to be ordered, the greater the APT it is wrong?

1) The FedEx overnight delivery is a frequent Scorer. The thief figures the market quickly process the order, which is not too much control. Death and give you a reason to seriously question, or if the approximate value of overnight shipping.

2) Look at the phone number and e-mail address provided by the client. Li code with the city and state of the customer? If a customer uses Yahoo, Hotmail or Google, in accordance with the client's name? Thieves always use these accounts for free. Of course, many genuine customers. But e-mail in an area not in conjunction with a free Web accounts with a user name (part before the @ sign), which corresponds to the customer generally good.

3) If your shop has a sponsorship information on orders, such as Yahoo! Store offers, for example, to examine how the customer found. My shop for information on the lists of words they use, or the last page, where they come from. Thieves who usually search for phrases like "International Shipping" or "overnight delivery" instead of keywords or categories of products that were advertised.

4) Check the IP address. And IP (Internet Protocol) address is a unique numerical identification, such as home address. In this case, it defines a computer network that the order came. Or your software should also show you the IP address, which was sent from. You want to know more. On my Yahoo! Shops, everything I have to do is click on the address, but not to determine the location of the network. If the shipment overseas into the United States, I believe that fraud, if I may be a phone number and talk to a real customer.

5) Be aware of the transfer and delivery of mail inboxes. Attention to treat mail. Many thieves to order items from abroad and send them maildrop. Often, instead of a cipher, these locations can be determined "luxury" rooms on the line. Miami, Houston and a lot of maildrop service in South America. Seattle and Los Angeles already Asia. Their new city holds Africa and Eastern Europe. When suspicious customers run the address on Google. Often you'll see a list of e-mail forwarding companies.

6) Be suspicious if the address and payment solutions in different conditions. At least when this happens, do not process the order when the customer to confirm the order. Some shops even make it a policy to ship only the billing address for a credit card. I receive many orders from my parents to buy products for their children who are in college, this is not a policy we impose. But we always call if the addresses are different.

7) Always expect fraud, if you have multiple orders from the same client to use the same credit card, or by boat.

8) Beware of unusually large orders. You know from your treatment or reports that the average customer buys. They know that this is a major issue. It is more than 250 dollars? More than $ 500? More than $ 1000? If exceeded, it is necessary to carefully examine the order.

9) skepticism, if you contracts with several volumes of the same product. It is customary that fraudulent orders large quantities of a point.

10) Look for typos, grammar and punctuation. Customers make serious mistakes when filling out your or our form. But not as often as possible thieves.

If I were cooking all in a piece of advice, it would be this: If you have any doubts, try to reach the consumer. If your phone, select it as a fraud. If no answer, leave a message on the answering machine. Then send an e-mail. If after 24 hours, e-mail and call never came back, no.

These are just some indicators of fraud and precautions that I've learned over the years. They are far from exhaustive. But I have all my employees filter orders through our eyes skeptical. So we have our payment only two or three cases per year.

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