Tips from for Effective Credit Card Fraud Detection

Tips from for Effective Credit Card Fraud Detection

Running an Internet-based business can be both challenging and rewarding. One of the main things an online business owner needs to be mindful of is credit card fraud. Each year, cyber-criminals steal millions of dollars from consumers. If a stolen credit card is used to purchased merchandise on a website, the owner of the website will be at risk of losing money.

That is why an online business owner needs to work on improving their ability to detect credit card fraud early in the sales process. Knowing the warning signs to look for can help a business owner stop this type of theft quickly. Here are some of the warning signs a business owner may notice when they are dealing with credit card fraud.

Be Wary of First-Time Shoppers

Over 440,000 cases of identity theft are reported each year. Many of these cases involve criminals stealing sensitive information from consumers, like their credit card numbers. As an online business owner, a person will need to be mindful of the risks posed by first-time shoppers.

Most cyber-criminals will create new accounts on websites when testing a stolen credit card. While having new customers is a good thing, it can also lead to a business owner unexpectedly accepting a stolen credit card as payment for products. According to RealtimeCampaign, new customers that create a new email address to make a purchase need to be vetted. While vetting potential customers to ensure they are not scammers will be time-consuming, it will be worth the effort an entrepreneur invests.

Keep an Eye Out For Suspicious Orders

In the article Deep Dive: Clean And Friendly Fraud Play Dirty, one of the main things covered is what constitutes a suspicious online order. For instance, if a new customer orders 30 of the same item, they may be a cyber-criminal looking to use a stolen credit card. If this suspicious order is sent out, the items in the order may be sold on other sites to help a cyber-criminal make even more money.

If an online business starts to receive these strange orders, they need to take action. Putting an order limit on new customers is a great way to avoid this type of activity. These order caps allow a business owner to minimize their losses if a stolen credit card is used. The team at FastSpring, for example, has several articles that detail how to avoid these types of problems. This article is a fantastic read for business owners trying to avoid credit card fraud in their online store.

Data That Doesn’t Match Up

Another important element of successful credit card fraud detection is matching up the data provided by a new customer. If a customer is using multiple shipping addresses with a single credit card, it may be an indication of fraud. The appearance of multiple addresses for a single card generally indicates organized criminal activity.

Don’t Wait Until It Is Too Late

The longer an online business owner waits to get a game plan in place to deal with credit card fraud, the more money they will ultimately lose. With the help of knowledgeable professionals, detecting and preventing this type of fraud will be much easier.

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