Ecommerce1) Card information and billing address provided does not match the bank's information
One of the most basic indications of fraud is a billing address and/or CVV/CVC mismatch to what the bank has on file. Merchants can use an Address Verification Service (AVS) to compare the information the customer provides with the information the bank has on file. When in doubt, merchants can call the customer to verify the info.
2) The billing and shipping address are different - a variation of above
Some platforms automatically alert the merchant to this condition where the shipping address differs from the billing address. This is not always fraudulent though as sometimes a gift is sent to a different address, or the person may be visiting a different location or even a hotel and need the item shipped there. Again, one of the best remedies is to contact the card holder for further verification.
3) The shipping address gets flagged or is suspicious
If the address is different to ship to than to bill to, the type of address may be more suspect such as a P.O. Box, prison, or international destination. Sometimes these types of orders warranty further inspection and verification.
4) IP address of the ordering computer does not match the shipping address
This one is a bit of a stretch, because people may order things when not at home, especially from a mobile device, but if the IP address does match the shipping address that puts the order into the good column.
5) High Quantities
A high quantity of a particular item may flag or warrant further inquiry. This could be a reseller or someone buying gifts for many people depending on the type of item.
6) Same Card - Multiple Orders
This one also does not necessarily mean fraud, but raises the likelihood the order should be investigated further.
7) Same customer uses multiple credit cards
This can also be ok if for example a particular card was declined so a backup card was used, but if repeated orders come from same customer with different card numbers, that looks suspicious and merits further enquiry.
8) Multiple credit card declines
This type of order may even be automated because system gets hit with multiple bad cards until one goes through. Either that, or this particular consumer does not have very good credit. In any case, this type of order warrants further scrutiny.
9) E-mail address appears suspicious
Some of the free e-mail clients or unusual e-mail addresses that look strange may put an order into the "needs further scrutiny" camp.
10) Unusual shipping requests
Customers asking for special courier service or other unusual request may be suspicious. Similarly when buying things from an online seller, those sellers that just want a money order or cash may have something to hide.
To cut down on online fraud, merchants can review daily orders for some of these tell-tale signs to minimize fraudulent orders and consequently chargebacks. As with any prudence, some common sense and a little extra time and scrutiny can make all the difference in the world.
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