E-Commerce Basics: Common Red Flags For Credit Card Fraud Detection

Here are some common red flags for fraud detection. While not inclusive, this should give you a start when it comes to identifying fraudulent orders:

1. Order total is over $300.00
2. High street value items (Digital Cameras, MP3 Players, etc)
3. Different Ship To/Bill To address.
4. CVV failure (Card Verification Value)
5. AVS failure (Address Verification System)
6. Free Email Account (Yahoo, Hotmail, Gmail)
7. Ordering multiple identical items
8. Express shipping
9. Items going to gateway areas such as border towns
10. Phone number does not match the Bill-To State
11. Multiple orders for the same customer with different IP addresses

While not every one of the above directly identifies fraud, it should raise a flag so that manual verification can occur. Have a red flag, not mentioned in our list? Leave a comment and let us know.