Online shopping fraud is not only a problem for online shoppers. Sellers encounter the same
problem and incur losses because of such fraudulent activity. Usually online shopping fraud solutions
and protections are provided from the buyer's point of view, which leaves sellers on the losing end.
This is the reason why it is important for retailers to come up with their own security measures.
Below are some tips that internet retailers can consider to detect online shopping fraud:
Matching IP Address and Credit Card User’s Address
One way to check that your customer owns the credit card they’re using to purchase your product is
to check that the IP address and the credit card user’s address match. Stolen credit card information
used to commit online shopping fraud usually doesn’t add up. The reason is that most stolen
financial details are sold to a different country first, so they wouldn’t be easy to trace. If you
encounter this problem, it is best to call the credit card company and inform them of the
transaction. This way the credit card company can do the confirmation for you. You may also opt to
block the IP addresses of the countries that are beyond the reach of your delivery service or are not
part of your target market.
Requiring Security Code
The security code is designed to confirm whether the card user actually has the card with them.
Unlike the other details of a credit card, this set of numbers does not appear at the front the card.
This number is found at the back of the card on the right side of the signature box, which makes it
difficult to capture. Online scammers using stolen credit card information usually don’t have this
number, so requiring the security code should help effectively reduce the number of online shopping
fraud cases for your business.
Matching Billing and Shipping Address
Another key indicator of possible online fraud is when the billing and the shipping address of the
shopper do not match. However, there are cases, when some shoppers actually prefer to send their
item to a different address. Especially when they’re giving the item as a gift or for other privacy
concerns. In this case, additional security questions or a call to the customer confirming the
authenticity of the purchase should be able to sort out the problem.
Hiring Fraud Assessors
To make things easier many online sellers subscribe to companies that offer fraud assessment. These
companies usually help automate the process of counter checking the shopper’s credit card address
and the IP address that they are using to place the order. They also have the ability to check the
previous transactions of the customer, so as to create a better profile of their shopping habits and to
ensure that there aren’t any red flags indicating a possibility of fraud. There are also some online
shopping platforms that already include a fraud assessment service, so you don’t have to hire a third
party provider.
These are some of the steps that you can employ to help your online business save money and
reduce incurring losses from online shopping fraud schemes.
problem and incur losses because of such fraudulent activity. Usually online shopping fraud solutions
and protections are provided from the buyer's point of view, which leaves sellers on the losing end.
This is the reason why it is important for retailers to come up with their own security measures.
Below are some tips that internet retailers can consider to detect online shopping fraud:
Matching IP Address and Credit Card User’s Address
One way to check that your customer owns the credit card they’re using to purchase your product is
to check that the IP address and the credit card user’s address match. Stolen credit card information
used to commit online shopping fraud usually doesn’t add up. The reason is that most stolen
financial details are sold to a different country first, so they wouldn’t be easy to trace. If you
encounter this problem, it is best to call the credit card company and inform them of the
transaction. This way the credit card company can do the confirmation for you. You may also opt to
block the IP addresses of the countries that are beyond the reach of your delivery service or are not
part of your target market.
Requiring Security Code
The security code is designed to confirm whether the card user actually has the card with them.
Unlike the other details of a credit card, this set of numbers does not appear at the front the card.
This number is found at the back of the card on the right side of the signature box, which makes it
difficult to capture. Online scammers using stolen credit card information usually don’t have this
number, so requiring the security code should help effectively reduce the number of online shopping
fraud cases for your business.
Matching Billing and Shipping Address
Another key indicator of possible online fraud is when the billing and the shipping address of the
shopper do not match. However, there are cases, when some shoppers actually prefer to send their
item to a different address. Especially when they’re giving the item as a gift or for other privacy
concerns. In this case, additional security questions or a call to the customer confirming the
authenticity of the purchase should be able to sort out the problem.
Hiring Fraud Assessors
To make things easier many online sellers subscribe to companies that offer fraud assessment. These
companies usually help automate the process of counter checking the shopper’s credit card address
and the IP address that they are using to place the order. They also have the ability to check the
previous transactions of the customer, so as to create a better profile of their shopping habits and to
ensure that there aren’t any red flags indicating a possibility of fraud. There are also some online
shopping platforms that already include a fraud assessment service, so you don’t have to hire a third
party provider.
These are some of the steps that you can employ to help your online business save money and
reduce incurring losses from online shopping fraud schemes.
