The Clearsale Blog

ClearSale at Bizzmarkblog: 6 Red Flags of eCommerce Fraud

ClearSale at Bizzmarkblog: 6 Red Flags of eCommerce Fraud

As a retailer, eCommerce is something you can’t escape, nor should you want to. While 94% of retail sales still take place in a brick and mortar store, eCommerce is gaining fast, and expected to increase by 17% annually. With $294 billion in sales, eCommerce is a sales channel that it’s would be foolish to ignore.

But eCommerce comes with risks. Specifically, since most transactions are completed with a credit card, fraud is a danger online merchants must be ready for. In 2016, eCommerce retailers lost nearly $7 billion to fraud.

As the old saying goes, an ounce of prevention is worth a pound of cure. It’s critical that retailers with online storefronts know the warning signs of card fraud with an eCommerce transaction.

Individually, these warning signs may be innocuous. A declined transaction is not an immediate sign of fraud, for instance, and treating it as such puts you in danger of driving away valid – and paying – customers. But these red flags do still represent warning signs that may warrant further analysis of the transaction to prevent what could end up being significant losses.

6 Red Flags of Online Credit Card Fraud  

First-time shoppers

New customers are the golden ring for all retailers. But when it comes to credit card fraud, they can also be the harbinger of bad news.

Criminals are constantly looking for new sites to buy from, hoping that the merchant won’t notice their unusual purchasing behavior. Also, if they have never purchased from you before, there is no way for you to have a record of them from previous bad transactions.

Address inconsistencies

There are a lot of combinations of bad addresses that can signal caution is needed.

International shipping in general, but particularly if the billing address of the credit card is in the U.S., should warrant an additional look at the transaction.

Phone number area codes and zip codes should match the billing address.

If you notice multiple cards being used to purchase items sent to the same address, take the time to check into the transaction further.

The reverse is true as well. If you have multiple purchases with the same billing address, but multiple shipping addresses, that could signal organized criminal activity that is coming from a single place.

Rush or Overnight shipping

To continue reading click here.

Is a Fraud Managed Services Solution Right for Your Business?

You may also like

ClearSale Wins Comparably Awards for Best Work-Life Balance and Happiest Employees

ClearSale Wins Comparably Awards for Best Work-Life Balance and Happiest Employees

Fraud protection leader recognized by career site for a second time this year

[Industry Focus] Fraud Risk Profile for Nutraceutical and Drug Retailers

[Industry Focus] Fraud Risk Profile for Nutraceutical and Drug Retailers

As people become more conscious of what they’re putting into their bodies, there’s been an increased demand for high-quality supplements and healthful food and beverages. The result has been a..

3 Ways Tech Can Benefit Remote Teams

3 Ways Tech Can Benefit Remote Teams

Ecommerce businesses are used to an ever-evolving digital connection between them and their customers. But 2020’s COVID-19 pandemic has resulted in that digital connection making its way into the..

Shopping Habits by Gender: What’s Changed in 2020

Shopping Habits by Gender: What’s Changed in 2020

Do men hate shopping online? Are women more worried about fraud?

How Management Should Contribute to Fraud Protection

How Management Should Contribute to Fraud Protection

As companies grow, management often delegates business-critical tasks—marketing, technology, fraud prevention—to different departments. While it might seem to be an efficient way to get things..

ClearSale Becomes Shopify Plus Certified App Program Partner

ClearSale Becomes Shopify Plus Certified App Program Partner

The fraud protection leader has been selected as a premier app provider for the highly regarded commerce platform.

“I Don’t Need Fraud Protection — My Business Isn’t at Risk!”

“I Don’t Need Fraud Protection — My Business Isn’t at Risk!”

As an e-commerce merchant, you know the risk of fraud, false declines and chargebacks. But maybe you think it won’t happen to you because you’re a relatively new — or small — e-commerce merchant,..

Account takeover is the biggest fraud threat U.S. consumers haven't heard of

Account takeover is the biggest fraud threat U.S. consumers haven't heard of

Account takeover fraud is a huge problem, but most US consumers don’t know about it. Only 36% of US consumers say they are familiar with account hijacking fraud, even though it’s one of the..

How Backtesting Can Improve Fraud Prevention

How Backtesting Can Improve Fraud Prevention

They say hindsight is 20/20, and that’s especially true for e-commerce merchants looking to increase their approval rates and decrease fraudulent transactions. It’s easy to look back at..

Want to write
for our blog?

Please review our writers' guidelines
https://www2.clear.sale/press/clearsale-guest-blog-guidelines
and then email guestwriter@clear.sale with your pitch!

Subscribe to our blog