Anti fraud measures for online payments
While basic anti fraud measures like AVS / CVV2 may be prevent some fraud, some basic steps may further reduce charge backs and misuse of credit cards.
These include:
1. Check the IP address from which the order is placed. If the address on the credit card and customer sign up form corresponds to a city in USA , but the IP address block belongs to an ISP in Africa, the chances of fraud are high. Sometimes, a fraudster may use proxies to circumvent this screening method.
2. If the goods are to be delivered, check the address to which the goods are to be shipped. Ideally, this should match the address on the credit card, though they may be different for gift items. In such cases, the customer could be contacted on phone for additional verification.
3. Most fraudsters prevent to use free email address like yahoo, hotmail, gmail as these are not traceable. Many online merchants now only accept sign ups with a paid email address from an ISP or a business name, which is difficult to forge .
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