Fraudulent transactions are an increasingly common issue in the online retail and e-commerce space. Criminals are able to steal credit card information and fake identities to fraudulently obtain goods and services without paying for them. This is possible thanks to technology advancements that allow fraudulent actors to hack into accounts or use social engineering techniques.
It is important to recognize the warning signs of fraud so that you can stop them in their tracks. Using data and machine learning to analyze every transaction can help you identify patterns that may indicate fraud. By paying attention to the who, where and what of every transaction you can detect and quickly stop suspicious activity.
Unmasking Fraud: Understanding and Preventing Fraudulent Transactions
When a fraudster makes multiple orders, it is important to examine all the order details to see if they make sense. For instance, if a customer orders items in various colors and sizes, this could indicate a resale attempt. Fraudsters want to maximize their earning potential when they steal a credit card number, so they often buy multiple sizes and colors of the same item.
If you receive multiple international orders from the same address, this is another red flag. Fraudsters are often trying to hide their identity, so they may use a service that masks the country of origin.
Also be wary of large sums of money being transferred to an account. While this is not a direct indicator of fraud, it can be an indication that the person has stolen a credit card and is testing their limits before they get caught.
