Common Fraud Transaction Characteristics
A fraud transaction could have one or more of these characteristics:
- Unsolicited email or fax initiating an order
- Shipping address to Nigeria, Asia, Africa, Port in Miami or similar location
- Large order for numerous duplicate items
- Large transaction amount
- Rush order
- Order reflects poor grammar/English
- Avoids using the online order form
- Several card numbers are used
- Disregard for high shipping costs
- Use of a TDDY (telephone for hearing impaired)
Progressive Orders
This scam involves multiple orders from the same customer. First, a small, routine
order is placed. Once the criminal receives the first order and knows the card works,
they will try to place a very large order. The merchant feels comfortable sending
a larger order due to prior business. The second order is usually placed within
the first 30 days after the first order.
International Orders
More than a third of Internet fraud comes from countries outside the US/Canada.
International orders have fewer validation tools, so the merchant assumes a higher
risk when accepting and processing one. As a result, extra verification is a must.
Checking the
3-digit security code (CVV2/CVC2)
is a recommended verification step for international orders. Address Verification
Service (AVS) is not available outside of the U.S. You must notify INTRUST Card
Center in advance, if you intend to accept international orders.
Internal Fraud
Employee theft is a fact of life. Watch out for the misdirection of refunds to a
credit card. Monitor mismatches between the credit cards used for ordering and any
subsequent refunds. Also watch for employees who may purchase goods and charge them
to a customer's card. Additional steps to protect you from employee fraud include:
- Monitor your employees
- Safeguard credit card information
- Balance your funds on a daily basis
- Review all refunds
- Limit the number of users that have access to your merchant account for card processing
and make sure that they are trustworthy
- Change your online merchant account password on a regular basis