jecasc - 6:49 am on Apr 12, 2011 (gmt 0)
Are you really sure all the orders are fraud? Maybe there is something wrong with your fraud management and you flag to many orders?
I have ordered several times in the US and nearly all my orders seem to have been flagged as suspicious by the merchants since I had to send all kinds of additional information like copy of identity card when using my credit card or use another payment option like bank-transfer. Some merchants didn't know that AVS wasn't available in most countries, some where suspicious only because shipping and billing address didn't match. Left me with an impression of paranoia.
What makes you think the orders are fraud? Have you tried offering another payment option like COD (Collect on Delivery) when you considered the order to be fraud?
Or if you are sure that the orders are fraud - could you make a change to your website that discourages fraudsters, for example using a shipping service like USPS "restricted delivery"?