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Fraud can cost a business time and money - that’s why it pays to be vigilant of unusual account activity. Here are some telltale signs of unusual buyer activity that may suggest fraudulent intent. If you see any of the 13 indicators below, you may need to take a closer look. And if you haven’t already, make sure to look at the six best practices to help prevent fraudulent payments from even taking place.
Are you seeing an abnormal number of payments from an unusual or unexpected location? While cross-border commerce is growing rapidly and there are benefits to accessing a global market some countries have gained a reputation for fraud. Payments from these countries may require closer scrutiny.
Be cautious if you receive an order from a new customer that’s larger than your average order size, especially if it’s for a product that’s in high demand, such as electronics.
For example, you receive 10 orders from Australian based customers, all around 3 a.m. on the same day.
For example, you receive over 50 orders from customers outside Australia within a few days, when you normally receive only two international orders within a month.
For example, a customer orders 50 pairs of the same shoe in various sizes. Ask yourself if it makes sense for a customer to order so many of the same product.
Fraudsters often steal credit cards from multiple people and ship the orders to a single address.
Just because a customer ships the order to another address, it doesn’t automatically indicate fraud, but a legitimate customer is more likely to ship orders to their billing address. Look at all the order details to see if anything else appears unusual.
Make sure their address change makes sense. Fraudsters originally enter valid addresses so your fraud systems don’t catch them. Then, they contact you to change the address. Also keep in mind that if you decide to ship to another address, the purchase will no longer qualify for PayPal Seller Protection.
Be cautious if the customer provides you with several different credit card numbers. The cards can be in the same name or different names. The fraudster may ask you to split up or create multiple transactions using the various cards. If you don’t already collect the credit card customer’s name, start requesting this information to help detect fraud.
Fraudsters like to receive merchandise quickly, regardless of the cost.
Look for email addresses that seem unusual, like knh$$yro123456@gmail.com, or undeliverable emails. Legitimate customers are more likely to use email addresses that contain their name.
If someone overpays you, don’t send the extra money back through a wire transfer, online banking transfer, or a pre-loaded money card. Overpayment scams are common. Instead, return the money through PayPal.
Before shipping an expensive order, make sure you know where the order is being shipped. Criminals may ship orders to freight forwarders, shipping companies, P.O. boxes, or vacant properties so they can remain anonymous.
For more information on protecting your business, you can also review these six steps to help prevent fraudulent payments.
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