Advice from our Partners at PayPal: https://www.paypal.com/us/brc/operations/fraud-management
Advice from our Partners at Fortis: https://go.fortispay.com/fraudawareness
Protecting Your Business: Tips for Verifying High-Risk Online Orders
Online sales are a fantastic way to grow your business, but it's important to be aware of fraudulent orders, especially those involving large amounts or first-time customers. While we always recommend utilizing our integrated secure payment processors and reliable fraud detection tools, there are some additional steps you can take to manually verify potentially risky transactions.
Spotting Red Flags
Here are some key things to look for when reviewing an order:
- Shipping Address Peculiarities:
- Check if the shipping address is a PO box or looks misspelled or strangely formatted.
- Use Google Maps to verify whether the address is residential or commercial, and if it matches the general location of the buyer.
- Billing vs. Shipping Discrepancies: Does the billing address differ significantly from the shipping address? Do the area codes of provided phone numbers align with the addresses?
- Email Address Oddities: Is the customer using a free email service provider with a nonsensical or generic-looking email address?
- Order Irregularities: Are the quantities of items ordered unusually high? Do the purchased products seem like an odd combination? These can be signs of a fraudulent order.
Extra Verification Steps
- Call the Customer: While not always convenient, reaching out to the customer can be helpful. Explain you want to ensure their order is protected from fraud – most legitimate buyers will appreciate the concern.
- Search Online: Try searching the customer's name, address, or email to see if anything suspicious surfaces.
- IP Address Check (If possible): Use free online tools to check if the customer's IP address is associated with a high-risk location or has a history of fraudulent activity.
Important Reminders
- Balance is Key: Take precautions, but avoid making the verification process overly burdensome for legitimate customers.
- Transparency Matters: Let customers know why you may need extra verification. It demonstrates your commitment to their security.
Stay Vigilant, Stay Secure
Fraud prevention is an ongoing effort. By understanding these red flags and taking a few manual verification steps, especially for those riskier orders, you can improve your business's security and protect yourself from online fraud.