| If you have ever been victim of fraud before, | | | | slightly older than a minor (as always, there are |
| then you know all too well how ugly it can be. | | | | exceptions to this). |
| The key to preventing fraud is to use common | | | | Domain |
| sense and investigate with all the information you | | | | Every domain must have contact information. |
| have. | | | | There are services out there that offer privacy |
| Preventing Fraud | | | | protection for their contact information, but a lot |
| They key to preventing fraud is to collect as | | | | of the domains are unprotected. You can lookup |
| much information as possible. While more | | | | your client's domain using DomainTools to see if |
| information is generally better, there is such thing | | | | it's registered to them, and if it is, compare the |
| as too much information too. You don't want to | | | | information there with the information that they |
| go around collecting your clients' SSNs, as that | | | | gave you. |
| probably would scare them away. A shopping | | | | Username / email |
| cart, or some sort of ordering system is usually a | | | | Almost all of the fraudsters that you will |
| good idea in keeping your customer data secure | | | | encounter will use a form of a free email address. |
| and easily findable. | | | | The tricky part is, so will your legitimate |
| Below we're going to break up the different | | | | customers. Googling their email address or a |
| techniques you can do with certain types of | | | | username will sometimes return some results that |
| information. | | | | you can checkout, and learn more about your |
| IP Address | | | | customer to see if he will be the ideal customer. |
| The best thing you can do with an IP address is | | | | How to Deal with an Existing Fraud Case |
| figuring out the location of it. You can do this with | | | | Didn't see this tutorial in time to learn how to |
| DomainTools or DNSStuff. Sometimes an IP can | | | | prevent fraud? Well, let's go over the basics on |
| be off by a few states or a few hundred miles at | | | | fighting those pesky chargebacks. |
| the most. But if the IP location is in a different | | | | No matter what type of merchant account you |
| country than your customer, then you may have | | | | own, if it is a legitimate fraud, then you will lose. |
| a problem. From my experience, the IP is usually | | | | It's pretty simple. However you do stand a |
| from an odd country. Generally IP is one of the | | | | chance against those who cry fraud, when in |
| most clear indicators, but it can be wrong. | | | | reality, they just wanted it free. |
| Phone Number | | | | If you use Paypal, then you do stand a chance. If |
| With a phone number, you can do several things. | | | | you sell a non-tangible service, such as software, |
| The most obvious is figure out where the area | | | | or programming/designing etc. then tell Paypal this. |
| code is. If this is a US phone number, you should | | | | Provide proof that you did fraud screening, and |
| be able just Google the area code and it will tell | | | | that you know this person received what you |
| you the location of it. Be forewarned, that a lot of | | | | guaranteed to them. If they've paid through a |
| times people have an area code near them, but | | | | credit card to Paypal, then your chances become |
| not necessarily in the same location. Then there | | | | increasingly smaller. Almost every dispute a |
| are the oddballs who have a VoIP number or | | | | consumer files with their credit card company, |
| something similar on the other side of the | | | | they will reward the consumer. Fighting a credit |
| country. You got to be very careful with phone | | | | card chargeback is not an easy task at all. |
| numbers. | | | | The bottom line is use common sense. Try to call |
| The next thing you can do is a reverse phone | | | | your customers directly if possible, to speak with |
| lookup. I find to be the most effective and | | | | them over the phone. This is by far the best |
| easiest to use. A lot of numbers that you will | | | | method of preventing fraud. But just remember, |
| lookup will be unlisted or cell phone numbers. A | | | | there is not a single method that will reduce fraud |
| reverse phone lookup is also an effective method | | | | by 100%. You should always be aware of that, |
| for finding out if your customer is a minor or just | | | | each and every day. |