How Is Online Fraud Detected? An Expert’s Guide

While the e-commerce industry has grown exponentially in the last couple of years, it has also given merchants something to worry about: online fraud. Sure, you can reach out to a wider audience when you’re selling your goods and services online. You can also monitor online activities to get detailed insights into consumer behaviors and competitor performances. Unfortunately, you also have to keep an eye out for online fraud.

Online fraud takes various forms. These include account takeover, new account, and checkout fraud. Scammers resort to multiple techniques, such as using stolen credit card information and exploiting referral codes to commit fraudulent activities and potentially tarnish a business’s reputation.

So, how can you detect online fraud to prevent your business from falling victim to a scam? Here are a few ways to go about it.

Use an Address Verification Service (AVS)

Many businesses use address verification services to minimize the chances of fraudulent transactions. They use an automated scam prevention system that helps them compare billing information with the details specified in the bank information. This way, fraudulent activity may be detected easily if there’s an AVS mismatch.

That said, different addresses don’t necessarily mean you’re subject to online fraud. You should always double-check the information and review it further before marking it as a fraud attempt.

Monitor User Location

Another thing to look at to detect online fraud is user location. Are the billing, shipping, and IP addresses aligned? Generally, the safest transactions are where all three addresses point to the same location. Of course, users may make updates along the way and/or conduct transactions from other locations. However, if you come across long distances between the addresses provided or notice recent changes, it’s worth taking a closer look.

Fraudsters usually add shipping addresses different than the billing addresses. This is especially worrisome if the shipping destination points to a re-shipping company. Make sure you look into it before proceeding with the transaction.

a person tracking customer information

Check Email Addresses

Finally, pay attention to the email addresses used to place orders, as they can help you detect online fraud. This is especially important if you’re conducting a B2B transaction. Emails directed to you or addresses mentioned in the billing forms should have reputable domains. If you’re dealing with a business owner, you’d ideally want to see a business email domain instead of a personal one.

You can use a third-party service or online scam tracking website to gain more information about the email addresses at hand, detecting fraud more easily.

FraudTrac offers online fraud tracking services to businesses and consumers alike. Contact us today to get started! You can also check out our blog here and use our platform to report malicious activities and business review scams online.

POPULAR POSTS

How To Recover From Identity Theft

How To Recover From Identity Theft

Identity theft i... Read More

Protecting Your Online Privacy: 6 Tips and Tricks

Protecting Your Online Privacy: 6 Tips and Tricks

Online privacy ha... Read More

Why Cybersecurity Should Be A Top Priority For Businesses

Why Cybersecurity Should Be A Top Priority For Businesses

In our increasing... Read More

The Importance of Two-Factor Authentication in Today’s Online Landscape

The Importance of Two-Factor Authentication in Today’s Online Landscape

In today's digita... Read More

RECENT POSTS

How To Recover From Identity Theft

How To Recover From Identity Theft

Identity theft i... Read More

Protecting Your Online Privacy: 6 Tips and Tricks

Protecting Your Online Privacy: 6 Tips and Tricks

Online privacy ha... Read More

Why Cybersecurity Should Be A Top Priority For Businesses

Why Cybersecurity Should Be A Top Priority For Businesses

In our increasing... Read More

The Importance of Two-Factor Authentication in Today’s Online Landscape

The Importance of Two-Factor Authentication in Today’s Online Landscape

In today's digita... Read More