Card Fraud Detection

Who to use

[Woodrow86]

setting up a site and need to find a company help with card fraud detection. The standard AVS, CVN is available form our payment gateway privider but we need deeper review. Any sugestions? Cost is an issue.

[Bewenched]

We have been using Verisigns fraud detection and has worked very well for us, but we are charged 0.25 per transaction to do it, but it is definately better than losing to the frauders and getting hit with charge back fees from the bank.

[mindanao]

To deter fraud, every order I have from a new customer, I call them on the phone to verify that they placed the order. It's not foolproof, but I started doing this about 4 years ago, and since then I have never been hit with fraud, except when I detected it and cancelled the order. No need to call regular customers.

It's cheap, and effective for me.

[ispy]

Try matching the phone numbers with a quick Google search. You can also go here [melissadata.com...] and match all kinds of things, city and state of phone number, where the ip address placing the order originated and whether it is in the same location as the billing address, get the idea. A fraudster would be very unlikely to list a real phone number matching the credit card billing address on a fraudulent order. Calling the customer to double check sounds good in theory, but I would rather avoid any potential problems that something may be amiss by checking it out without contacting them.

[BananaFish]

Usually it's just a matter of common sense. Multiple units, high ticket units ... especially when the shipping and billing addresses do not match. The fraudster may also request or choose express shipping, since it's not on their dime.

[Daffy528]

Truth is, nothing is foolproof.

But you need to Geo-IP target, check the phone info, negative chargeback history, etc.

But even with all of that, there is always a risk.

[evaddnomaid]

Put an online fraud detection service to work at your site. Use one that is offered as a Web Service for easy of integration. Try a Web search for "fraud detection Web Service".

Also, as was suggested earlier in the thread, verify phone numbers. (Search for "phone verification Web Service".)

[JSebastian]

US based fraud is very unlikely and highly prosecutable.

Most fraud is international on US based credit cards. Some solution providers (I think Nexternal is one) show an alert if the IP doesn't match the billing addy. That's a HUGE tip off of most fraud. Then it's time to call John Q Cardholder in Idaho to see if he's really in Ghana ordering $5K of merch.