Many Effective Tools to Detect Stolen Credit Cards, Part 3 of 3
Tuesday, May 6th, 2008This is the third and final installment in a series outlining and explaining tools to identify and prevent credit card fraud. Previously, we discussed different methods of verification and geographic order tracking. Here are a few more methods you can use to combat fraud.
Fraud scoring systems
Through custom-built software or made-to-order fraud scoring services, results of the previous tests on good orders are scored and averaged. Every incoming order is then compared against that average, and given a rating of 1 to 100 with 100 being the highest. Points are given for different elements of a transaction, from IP Address, to free e-mail account, to time of day (most cases of fraud occur between midnight and 2 a.m., according to one source), AVS results, amount of sale, type of products ordered, shipment method, different shipping/billing address, certain zip codes, indicative browsing patterns, and so on. Merchants can set their own rules, lowering a score if the country isn’t…
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Many Effective Tools to Detect Stolen Credit Cards, Part 3 of 3
