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Top 3 tips to identify fraudulent purchases
Fraud prevention has been around almost as long as stealing, and good businesses employ security systems that help them identify shoplifters before they leave the store. The online space continues to be a hard place to identify fraudsters. one expert offers his top 3 tips for brands to identify fraudulent purchases.
First ask 'Is it too good to be true?'
"If you typically sell one widget per customer and someone orders 100 in one order, pump the brakes. Does this customer have a record of ordering wholesale quantities? Don't let the excitement of a big sale blind you. The chargeback fees, lost product and additional fraud attempts will be painful," said Ralph Dangelmaier, CEO, BlueSnap.
Second, can you validate the order?
"If an order seems suspicious, validate it. First, verify the shopper's address and phone numbers with WhitePages.com or Spokeo.com. Search the email address in Google or even Facebook, and if nothing turns up, call the shopper. Ask if he or she can verify the billing address associated with the credit card, and then follow up by asking for the names of the cross streets nearest their address (have GoogleMaps open and listen for a delayed response or typing in the background)," said Dangelmaier.
Third, try the Duck test.
"You've probably heard the expression, "If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck." The so-called 'duck test" suggests that you can determine what something is by its habits, and this applies to online shoppers. If XYZ Corp. orders $10,000 worth of business software from a residential address, it failed the duck test. Likewise, if Jane Smith uses the email address [email protected], that's a red flag. Why did this person attempt to use six different credit cards before getting an order through? Why is the customer, who supposedly lives in Chicago, shipping to an unaffiliated address in Jakarta, Indonesia? Legitimate customers act like legitimate customers," said Dangelmaier.
We'll have more BlueSnap tips later this week including how fraud rules can help your company identify fraudulent purchases.
Image via Shutterstock
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