http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/ User submitted comments to Practical Ecommerce's article entitled Field Test: Fraud Prevention, Part 1 of 3 en-us Copyright 2007 Confluence Publishing Tue, 25 Mar 2008 16:59:14 -0600 http://www.practicalecommerce.com/rss/ Practical Ecommerce v2.0.1 Ecommerce kmurdock@practicalecommerce.com bgetting@practicalecommerce.com 60 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8131 We at BabyDirect.com use MaxMind. It rocks! Tue, 25 Mar 2008 16:59:14 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8131 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8108 I had a customer claim he never recieved his order after track and trace and signature required was tracked to his house from two differant warehouses and he used a bogus name on the signature. It seems odd two shipments to the same address could go so wrong! It appears you can get free product this way> Sun, 23 Mar 2008 07:20:05 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8108 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8071 Has any one looked into Verified by Visa or MasterCard SecureCode as ways of helping combat fraud? Thu, 20 Mar 2008 20:12:19 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8071 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8072 You are charged a chargeback fee even for frauds once the original cardholder reports it to your bank. You can save this fee IF the cardholder calls you first (we've had this happen) and either questions or advises you they didn't make the charge. Then you call the issuing bank and find out whether the shipping address is in the customer's record. If not, then you credit them back before they report it to the bank and you save the fee. Of course you are still out the merchandise! Thu, 20 Mar 2008 20:12:06 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8072 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8068 I recently found that Indonesia is the worst country for credit card fraud. I have had 3 orders from Indonesia within the last month. All were for significant $. Currently, my international shipping charges are separate from my website. International buyers now pay separately via PayPal. I overestimate the shipping fees and refund the difference. One "customer" emailed me his credit card numbers and it was rejected for shipping fees. He has never contacted me again. I have since declined all orders from Indonesia. It seems strange that someone from Indonesia would want my product. I have also had a large order from Nigeria. Again, strange I would receive an order from Nigeria. This customer had multiple excuses why he could not pay for international shipping with PayPal, cashier's check, etc. No further contact from that person. I am unsure if I am liable for fraudulent charges even if my product was shipped. Does anyone know? Thu, 20 Mar 2008 12:04:36 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8068 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8066 If l think that l am being had or taken a fool for money and can not get anymore information about this internet.com business. Who deals with this ? Who do l get intouch with, where do l send my complaint to ? Thanks Dave Hookham Thu, 20 Mar 2008 10:21:13 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8066 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8067 We have been hit a few times. On our site www.envirosafetyproducts.com the pattern is almost always the same; different ship and bill to address, almost always for 3M respirators, and the worst part is that they match on the AVS and CVS. For this reason, it makes us have a trained person look over all orders over $250. This puts a snag in having full automation. Thu, 20 Mar 2008 10:20:40 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8067 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8059 When we set up ArenaFlowers.com, we didn't expect much fraud. We were wrong. We get a lot of men using stolen credit cards attempting to buy flowers and chocolates and wines for people they've met on dating sites. Once they've won the customer's affection, they then fabricate some problem (eg "my son has been kidnapped in Nigeria and all my credit cards stolen") and then ask the lady to send money via western union. This cost quite us a lot in chargebacks until we realised what was going on. We rapidly built a bespoke system for fraud detection using numerous indicators to catch suspect orders and cancel them. We have a very high success rate now. We also alert the recipient that the person is trying to take advantage of them and explain the scam. Bizarre the way the world works. Also worth noting that fraud when people pay with PayPal is virtually zero. I think there's been one instance in many thousands of PayPal transactions since we started. Thu, 20 Mar 2008 09:45:01 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8059 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8064 In the electronics side we get an average of 1 out of 10 orders being a fraud attempt. We couldn't live without the assistance of maxmind in streamlining our fraud preventing strategies. Thu, 20 Mar 2008 09:44:26 -0600 http://www.practicalecommerce.com/articles/698/Field-Test-Fraud-Prevention-Part-1-of-3/#comment8064