Detecting & Resolving E-Commerce Fraud Video Lecture | E-Commerce - B Com

fraud is a concern for a lot of
e-commerce merchants I know that a lot
of merchants are asked me what types of
tools are out there what kind of things
that they can do to protect themselves
whereas other merchants I think have
almost a passive approach to ecommerce
for all they just think that well if it
happens it happens hope it doesn't about
what's your general take is you talks a
lot of your merchants in terms of the
attitude related to ecommerce sprawl
what are you seeing out there well of
course there are a lot of good tools
that are available at a small cost that
do a great job of reducing fraudulent
orders most of merchants that I deal
with especially with higher ticket items
are especially concerned they're seeing
a lot of what we call family or friendly
fraud coming to bear and they're
concerned about the problem is that a
lot of them don't have any type of
system implemented or certain volume
points to where their employees or even
they themselves as the owners pay a lot
more attention to these orders and when
they don't they gets done Bob you've got
a lot of tips here let's start with the
first four to summarize these for us
sure let us go over them briefly
basically it doesn't matter whether or
not you see a correct indication of
whether that cards billing address
whether the card verification code is
good or not it does not necessarily
indicate that you've got a good order
it's real easy for sweet little Suzy the
daughter of John to borrow John's credit
card and order some huge amount of
makeup from xyz.com and then when the
cardholder dad gets it he charges back
because he has no idea that Susie's
ordered that so order amounts especially
but when you've got an order that's got
a different billing address from the
shipping address and overnight shipping
is always suspect you really want to
take a good look at it don't be lazy
look at the address is on the map if
they're different I don't care if
they're in the same town especially
takes it
I'm sure no matter what platform you're
owned you have some way to check the IP
address for the order is actually placed
looking at that will give you a lot of
information you may have an order
originating from New York shipping to
New York but the IPS from Jamaica a big
big red flag there that makes sense Eric
makes a lot of sense now Bob this next
slide here I know you know in talking
before with you online mass is a big
tool that people can use right that's
correct we we snag a lot of fraud before
it starts with this I mean take just
take a look at this you've got a guy
that's ordering he's got a great looking
house in a great neighborhood by the way
this is Houston Texas household friend
of mine looks good let's ship it right
you might want to wait a minute because
if you look at the shipping address that
he gave you that was where your
cardholder got gas the other day and
when the reader if the pump didn't work
he went inside and while he was getting
a soda and the guy was ringing him up
and paying for it he copied down all the
credit card information
including the address that he saw on
your driver's license that she left
laying on your open wallet so before you
ship it take a look at where it's going
it could be it could be a freight
forwarder if it's in the Florida area it
could be in South Texas you can have UPS
stores that will have a big amount of
fraud going through there look at where
it's going you'll save yourself a
fortune in the long run saving one fraud
order could literally save your
percentage for the quarter I mean you
could it makes a difference in making
money or not making money really really
take a good look at it right well I've
got a question here for someone that
asks how much time each month should a
merchant ideally how much time should
emerges being each mine monitoring fraud
well if you've got somebody like me I'll
help monitor it for you but if you don't
let's say that you're doing it yourself
quite honestly if you're a merchant you
need to look at every single order over
a certain threshold I mean a five-dollar
order may not likely to be fraud but you
have to set your comfort level and just
remember
every time you get hit with a chargeback
for an order that was placed
fraudulently that's kicking up your
charge back percentage and if you get
over 1% you could get on the Visa
MasterCard radar and you don't want to
go there so I advise you as an owner if
you have the time I mean you may be
getting hundreds of orders a day I hope
you are that's fantastic but you really
need to take a look at them because any
or all of them could be bad so as far as
time goes I spend about I'll spend five
to ten minutes fraud scoring an order
that suspect and that includes looking
at everything using several other free
online tools to search for address
information maybe the name of the person
other residents at the house five five
to ten minutes an order on an average
order that you might suspect is fraud
Bob what about the available software
that's out I mean do you stand by that
is that something that you would
recommend or not a couple of different
things you have basic fraud tools let's
address three very very quickly those
merchants that are on the ahoo store
platform here haven't have a product
called risk tools it's somewhat useful
it only really serves to flag I consider
it worthless other than for basics but
then you're getting what you pay for
there it's free another paid product
that is good that a lot of merchants are
taking advantage of is a product called
sub uno dot-com gentleman a miracle and
it's it's helped merchants quite a bit
also authorized.net payflow pro calm and
some other white label off net variants
also have fraud sweets but it's not as
encompassing as a specific fraud tool
like us something that southern it would
use or having someone like me for an
agent that will go in and do the actual
fraud search on a manual basis to make
sure that sound good that sounds really
good so with merchants that have had it
that want to be proactive what you're
talking about you've got five oh I get
steps here walk us through that Bob oh
no this is where it gets fun and this is
where you base
we have to step up buck up and forget
that the customer isn't always right in
this case the customer is wrong the
customers ripped you off if you have if
you have a phone number for them that
works get on the phone with them scare
the living daylights out of them I
routinely call fraudsters for my
merchants and just basically say hey you
know you bought such-and-such from the
store you filed a charge back we know
that you have the merchandise we're
gonna have the carrier's security come
and visit with you we're gonna have the
local police come you know is it really
worth the embarrassment and jail time
for a $50 item after you do that after
you make that call get on the phone call
the local police don't take no for an
answer they may tell you oh you have to
file through your local police
department fine do it take the time it
takes to get your money back and then
push that non local police department to
do their work I demand that you do it
it's the law you've got a loss they've
got to handle it and once you start
follow through don't stop doing it and
in the end you can get your stuff back
you can see a chargeback dropped in the
case of the you know daughter buying
makeup on Daddy's card or you can get
the fraudster prosecuted in the last
seven years our group successfully put
four individuals in jail that we're
having major fraud rings we were
instrumental in getting them caught
simply because we didn't stop and we
didn't give up and that's what these
merchants need to do is follow through
and don't take getting ripped off
lightly
absolutely well Bobby if anybody has any
kind of follow-up questions for you
what's the best way for them to get in
touch with you well they can they can
get in touch with me by emailing support
at top-ranked commerce dot-com and
honestly you don't have to be my
merchant to ask a fraud question in fact
it'd be a good way to get to know each
other if you've got a suspect order
you'd like me to check it send me the
order detail I'll give you my best guess
on it and it's a good way to it's just a
good way to see how it's handled
right so they do not have to be your
merchants in order to contact
you know they sure don't I'd love them
to me but I'll give them something to
show the proof for the pudding