How can I identify suspicious transactions?

Last updated 1 year ago

We recommend paying attention to the following to determine if the circumstances surrounding the card payment seem suspicious. While this can be difficult in a card-not-present environment, any interactions with the customer and review of the card transaction can help identify fraudulent activity.

Ask yourself, does the cardholder:

• Make purchases substantially greater than your usual customer (e.g., your average transaction is $60, but this transaction is for $360)?
• Seem to be in a rush to receive the product/service as quickly as possible regardless of your suggestions or options to save on shipping, etc.?
• Appear to be purchasing an unusual amount of expensive items or the same items?
• Repeatedly come back, in a short amount of time or right before closing time, to make additional purchases?
• Cause an unusual, sudden increase in the number and average sales transactions over a one to three day period?
• Have a previous history of disputed charges?
• Place orders to be shipped to an address other than the billing address, or use anonymous/free email domains?
• Place orders sent to zip codes or countries where you show a history of fraudulent claims?
• Use a large number of prepaid cards to make purchases?

In addition to cardholder behavior, some businesses are more susceptible to fraudulent activity. These industries include sales of items that can be easily resold:

• Gift cards
• Jewelry
• Electronics
• Clothing
• Accessories

Be suspicious of out-of-pattern purchases based on your normal business model, or out-of-pattern purchases based upon human behavior (e.g., someone buying three televisions or four pieces of jewelry).