What to search for when checking orders manually for fraud.

S

Senad

New member
Fraud orders...everybody hates them...yet they continually thrive with many hosts.

I think it it's pretty nice to make a list of things host should look for when checking up on fraudulent orders.

#1) IP Address (Make sure that the IP address matches the location of the client address).

Sites such as:
http://www.geobytes.com/IpLocator.htm
http://www.ip2location.com/free.asp
http://internetfrog.com/index.asp?source=g

Can be helpful in determining if that order came from where it should have.

#2) Whois search. If the whois information isn't what it should be (IE: E-mail, owner name, and address is not what it is in your sign up) then this payment should have warning signs as being fraudulent.

#3) Address look up. Make sure that the client who signed up actually exists. Try to search for their address and name (NOTE: at times real clients may not be listed).

Sites such as:
http://www.iaf.net/
http://www.anywho.com/

#4) Don't always believe the addresses that sign up! At times you may get a user to sign up with address@domainregistered.com (this domainregistered being the same domain the user signed up with). However it may be likely that this user is using false information and the order can therefore be a fraud.


That's all that I can think of for now but be paranoid. During the holiday and summer rush many fraudulent orders do tend to come into play!

Any more input from the community on this would be greatly appreciated.
 
It is also important to recognize the pattern of fraud purchases. More often then not, they will purchase your biggest plan. Thus, if you don't get a lot of orders for "biggest plan name", then you should be sure to check it out even more carefully.

Also, be suspicious if they immediately contact you to demand enabling of SSH.

Also, if the order has ANYTHING that triggers your "gut feeling", then you may as well call the phone number they provided. You asked for it, so why not use it? In most cases, if you tell them you are just manually verifying their order.. they are impressed by your thoroughness and it makes your company look good.
 
I would like to add few more points..

1. Be extra careful about orders from Suspecious countries and countries having high risk/fraud rate.
2. Don't enable automatic account approval. It should pass atleast a manual check before account activated.
3. Insist on paypal pay as much as possible. Credit card frauds causes double loss (fees returns + charge backs)
4. Call and verify the request. Our experience says this is the best way to avoid frauds in the begning.
5. Spammers are as dangerous as frauds. So if it is possible, keep as eye for around 5-8 days on new active accounts.
6. Maintain a list of Spammers + frauds information with their email ids, IPs and pattern, as you get information about them.

Hope this will help members in reducing frauds/abuse to their services :winter:
 
If you want to prevent your business from fraud payments you can use PAYPAL or 2CHECKOUT as payment options. As they are allowing Host’s to accept credit card payments from those customers who are not having account with Paypal or 2checkout. Our experience says that the credit card payments through them will help you to reduce the fraud payments by credit card.
 
Gineey, and everyone else:
This, of course, does still not prevent the fraud from taking place. I have no idea how many orders have passed the initial 2Checkout, or even the followup verification only to be shot down a week later, or to get a call from the TRUE owner asking, "Who are you and why did you charge me X amount?"
 
I can only agree with Exon here as I have had experience dealing with fraud on both levels occurringly even when they have passed all fraud checks they refund their money after a month.
 
Last edited:
Exon said:
This, of course, does still not prevent the fraud from taking place. I have no idea how many orders have passed the initial 2Checkout, or even the followup verification only to be shot down a week later, or to get a call from the TRUE owner asking, "Who are you and why did you charge me X amount?"
Click to expand...

Correct, 2CO takes DAYS to approve/decline payments. That could be a pain for billing guy. I think there is always some degree of farud cases you have to keep provision for.
 
1. In most fraud orders they will purchase your biggest plan for which normally you don't get too many orders. That in itself should alert you to check the order carefully.
2. Also be more careful if an order comes from countries which have a high percentage of risk and fraud order rate.
3. If you are accepting credit card payments there will be high risk of fraud payments. It's better to use PayPal or 2Checkout to minimize fraud payments.
 
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