I've been receiving fraudulent transactions and I can't tell them apart!

7 replies
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Shopify has been flagging possible fraudulent transactions saying that their address does not match their IP. They seem to create accounts from different IP locations.

I see the money come through correctly as I accepted some of them in the beginning, but what is the point of these fraudulent transactions?
#fraudulent #receiving #transactions
  • Profile picture of the author sbucciarel
    Just a guess, but if they are using stolen credit cards, they get the merchandise and don't have to pay for it.
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    • Profile picture of the author tbk125
      Originally Posted by sbucciarel View Post

      Just a guess, but if they are using stolen credit cards, they get the merchandise and don't have to pay for it.
      I've had this happen and I have been screwed out of my merchandise.. which makes me want to ask what do others do when you have shipped a product and someone calls in their card stolen?
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  • Profile picture of the author serpyre
    The simplest is when there appears to be a problem ask questions - normally they will not respond or provide conflicting information. The best is if you are unsure reject and refund - it takes 10 sales to make up for 1 fradulent transaction. We had a few come through - we ask for information - no response and therefore refunded. If they are legitimate they will often contact you.
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    • Profile picture of the author tbk125
      What should I ask for that would confirm the are not a thief?
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  • Profile picture of the author serpyre
    The problem with this is that it is qualitative - there are no fixed rules. As you are a small business you will have problems when you ask for id to be sent, however you can ask for a copy of the card for the transaction. With PayPal - this is where it becomes complex - they are firstly on the side of the buyer. Asking for a utility bill can work - when a chargeback comes through you need to be able to say you performed 'due dilligence' - for that you need more information.

    It really comes down to a risk/reward balance. You need some technology to help you - ip address city matching the shipping address - not many people ship outside of their area. You can also just phone them and say you need to reconfirm the details - fradulent transactions - they don't like this type of thing and you can then just see if the pieces fit the puzzle.
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    • Profile picture of the author tbk125
      f**king scammers this type of thing makes me so angry
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  • Profile picture of the author wmrwl
    Yes, many times scammers will try to "card" your e-commerce site with stolen card numbers. There are a variety of ways of preventing this. Once you get known as a "cardable site" they will share that information with other "carders" and you'll get hit more often. If you have enough prevention in place they will move on to easier targets. First off, are you using AVS verification with your merchant provider?

    Another way of verifying suspected transactions (if you're not shipping to the billing address on file with the bank - verified by AVS) is to call their bank and verify the phone number on file. Call that number and say that for security purposes you're confirming the transaction was authorized. In my e-commerce business I've come across a lot of people saying "no, i didnt order that" and I cancelled the order. I also advised the person who answered the phone that their card may be compromised and to contact their bank.
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