Limiting Fraud

Learn to recognize and stop potential fraud on your site by familiarizing yourself with some easy checks and balances.

Be Vigilant

One important way to avoid being a victim of online fraud is to learn to spot the signs of a fraudulent order. Here's a list of things that should make your “fraud radar” kick in:

  • Expedited shipping.
  • Huge dollar amount or repeats of high dollar items.
    • Forks, electronics, and group sets are common targets.
  • Meaningless email addresses.
  • Unusable or incorrect billing phone number.
  • Unrecognizable or illogical city or street names in billing or shipping address.
  • Multiple orders placed with different credit cards.
  • Billing and shipping addresses are different. 

If you edit an order, you can click Fraud Alert at the top of the screen to see items we are seeing commonly ordered with fraudulent transactions. This also gives you the chance to report a potential fraudulent order to us.

SmartEtailing Payments - Powered by Stripe

Stripe offers a fraud detection suite that is automatically included when you use this payment method. It helps minimize fraudulent transactions making it through to you.

  • In the event that a transaction does make it through, when you return the payment, make sure that you select "fraud" as the reason for the refund.
    • This blacklists the email address and card number from that transaction and prevents them from ever completing a transaction again through Stripe.
  • The more transactions that get completed, the better the system gets.

PayPal

PayPal is another secure ways to send or receive money online. We recommend that you activate PayPal on your website, as customers have a high level of trust in it.

  • If you select “Only accept orders from PayPal Confirmed Shipping Address” in the SmartEtailing Merchant Interface then you greatly reduce the chance that it could be a fraudulent order.
  • It is worth noting that In-Store Pickup vs. shipped transactions offers different levels of protection for you as a seller.

Authorize.Net’s Fraud Detection Suite

Authorize.Net offers a feature they call Advanced Fraud Detection Suite.

  • This is a set of customizable, rules-based filters and tools that identify, manage and prevent suspicious and potentially costly fraudulent transactions.
    • We recommend customizing these to your comfort levels.

Are You Using Supplier Fulfillment?

  • We recommend keeping supplier fulfillment a manual process and do not turn on automatic fulfillment.
    • This will require you to first verify the order and then manually request supplier fulfillment.

Verifying a Suspicious Transaction

There is nothing that SmartEtailing, nor anyone else for that matter, can do to guarantee that any given order is valid. The merchant is always at risk, the same is true for in-store interactions. However, here is one process that will help you verify a customer's identity:

  1. Google the shipping and billing addresses. If the result is a freight forwarder, UPS Store or strange business, it's almost guaranteed to be fraudulent.
  2. Do the same thing with the phone number, if the result is a business listing, it's likely not legitimate.
  3. Call the number and ask for the cardholder by name. Any balks or questions and you've likely got a fraudulent transaction.

Other Resources

Here are some resources we recommend:

Reporting a Potential Fraudulent Transaction

PayPal - Fraud Prevention

Stripe - Radar

Authorize.net - Advanced Fraud Detection