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Though it may not seem prevalent fraud leads to millions of dollars of lost profit every year. There are some factors in place to help prevent fraud.  It is key to utilize these factors to help limit fraud.  It is important to require the address of the cardholder along with Zip code and CVV during a transaction.  Authorize.Net provides a fraud detection suite that can assist in implementing these features.

Sometimes these features are not enough.  We have identified multiple common traits in fraudulent transactions.  Please read below and make yourself familiar with the following traits to help limit or remove all fraud from your online activity.

Keep your eyes open for the following fraud indicators. When more than one is true during a card-not-present transaction, fraud might be involved. Follow up, just in case.

First-time shopper: Criminals are always looking for new victims.

Larger-than-normal orders: Because stolen cards or account numbers have a limited life span, fraudsters need to maximize the size of their purchase.

Orders that include several of the same items: Having multiples of the same item increases a criminal’s profits.

Orders made up of “big-ticket” items: These items have maximum resale value and therefore maximum profit potential.

“Rush” or “overnight” shipping: Crooks want these fraudulently obtained items as soon as possible for the quickest possible resale, and aren’t concerned about extra delivery charges.

Shipping to an international address: A significant number of fraudulent transactions are shipped to fraudulent cardholders outside of the U.S. Visa/MC address verification (AVS) can’t validate non-US, except in Canada and the United Kingdom or few other banks who participate in the US AVS program.

Transactions with similar card account numbers: Particularly useful if the account numbers used have been generated using software available on the internet.

Shipping to a single address, but transactions placed on multiple cards: Could involve an account number generated using special software, or even a batch of stolen cards.

Multiple transactions on one card over a very short period of time: Could be an attempt to “run a card” until the account is closed.

Multiple transactions on one card or a similar card with a single billing address, but multiple shipping addresses: Could represent organized activity, rather than one individual at work.

In online transactions, multiple cards used from a single IP (Internet Protocol) address:More than one or two cards could definitely indicate a fraud scheme.

Orders from internet addresses that make use of free e-mail services: These e-mail services involve no billing relationships, and often neither an audit trail nor verification that a legitimate cardholder has opened the account.

With a bit of due diligence you can secure your business interests and protect your funds.

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