Women in Ecommerce™ realizes that because many of our members and visitors do business online it is important to know the risks involved, especially when it comes to online fraud. If it can help you save money you work so hard to earn, then we recommend you read these tips and pass them on to your friends who also do business on the WEB. Anyone who does business on the web should really keep their eye on the Internet and the latest scams and schemes out there to minimize your risk.
According to Target Marketing Magazine, you CAN minimize your risk of payment fraud with online purchases. These twelve scenarios will help you minimize your risks in a potentially fraudulent transactions:
1. The ship-to address either is a P.O. box, personal mailbox or mail receiving service possibly indicating a lack of a permanent address.
2. Toll-free telephone numbers are given instead of direct lines.
3. A single customer placing multiple orders in a short period of time could mean the perpetrator is trying to use up the card before it is reported stolen.
4. Big ticket items have resale value and offer maximum profit for the customer perpetrating the fraud.
5. Orders containing several of the same item – especially those with the most resale value.
6. Orders from free internet email addresses making it difficult to verify that a legitimate cardholder has opened the account.
7. Orders shipped to an international address – Fraud tools may not be able to validate foreign addresses.
8. Orders shipped to one address but placed on multiple cards, potentially indicating stolen cards.
9. Multiple transactions on one card or similar cards with a single billing address, shipped to multiple addresses.
10. Multiple cards used from a single IP address can indicate fraud.
11. The customer sends you a cashier’s check for more money than the agreed price “by mistake.” When you get the receive the check you call the buyer (or they call you) and she/he asks you to send you the difference by personal check, wire transfer, or money order. This works because you have cashed cashiers check and have already sent the merchandise.
12. Another scheme with using cashier’s checks involve sending the correct amount and then requesting a refund.
There are dozens more ways that fraudsters can cheat a company out of their products and money. Be wary and aware of new customers you have never heard of or done business with. While the majority of people who purchase online are honest, there is still a commuity of online thiefs whose entire career is bilking people out of their hard-earned income. Remember the old saying that “if it sounds too good to be true, it likely is.” These twelve tips are just the tip of the internet fraud iceberg.
For more detailed information, check out the Online Fraud Protection Guide by OSCommerce.com http://www.oscommerce.co.nz/docs/online_fraud_guide.pdf