Fraud on the Rise - What to do?

[blaketar]

I am starting to see an increase in Fraud on my site. Stolen Credit Cards being used to purchase ads, fraudulent individuals solicitating legitimate sellers with phony Cashiers Checks, etc...

For the most part I have been diligent in IPTABLES IP banning, email address banning and checking each new registered user. The problem is beginning to get very sophisticated as the fraudsters are getting smatter each Fraudulent Day.

Recently I have seen IP spoofing and new email addresses every 10 minutes in our 'Contact Seller Form'.

I am curious if their are any other protocols available to start tracking and banning these rouge thief’s? What other actions can one take to insure a safe operating environment?

As I posted in another topic, I believe as a Legitimate Business Establishment I have the right to refuse service to anyone I see fit! If an individual walks into my Brick & Mortar store and uses a stolen cc and I catch it I have at least a facial identity (unless he is wearing a mask which in this case I would question it immediately), if he returns in 10 minutes with another stolen cc I begin to question this individual, if again he returns with another stolen cc I call the fbi and hold him for pickup. Yet with my online business it seems there is no identity and no true accountability....

As you can tell I am becoming very frustrated by the fact that liability seems to be passed down the line. The online FBI center won’t take action unless a purchase of significant amount is incurred. Yahoo, msn, AOL and the likes give everyone a new email address upon request as many times a day as you want. AOL funnels 8 million or more people through a proxy in Sterling VA making it point blank impossible to ban anyone on their network, yet rogue thief’s use stolen cc's to purchase an account on their very network. A call to Visa or Mastercard with the notice of a stolen CC does little good as the ind. who owns the card needs to call, what happened to first line defense?

Very Frustrated.... I know identity is a big issue on the net, but these masked identities are starting to add up to huge dollars in the marketplace in the form of fraud and wasted bandwidth!

Thoughts anyone? Suggestions anyone?

[conductor]

Hello

I realy understand your desire to conduct business with honesty and dignity. It seems that both the online world and real world continues to slip backwards from civility to chaos. Giving in is not an option. For me I have turned to professionals and outsource cc transaction, yes it expensive but worth it. I use 2checkout.com and ccnow.com. There are a few others. I have no merchant account Good luck

[etechsupport]

Do you have installed fraud detection tools?

[conductor]

Again I'd like to restate that my feeling that this problem is too big for an individual to handle and is a waste of resources. Outsource the fraud dection to the professionals.

[etechsupport]

They should be expert in tackling fraud and should provide you fraud awareness training how to avoid it. Overall I think the fraudster are elusive and sophisticated, they’re using always new techniques sometime even not noticeable by those companies.