13 signs of fraudulent activity to look out for

1Shipping address is in a high-risk country or location that’s known for fraud

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.

2An order is larger than normal

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.

3You receive an unusually large number of orders during an unusual time of day

For example, you receive 10 orders from U.S.-based customers, all around 3 a.m. on the same day.

4You receive an unusually large number of international orders within a short period of time

For example, you receive more than 50 orders from customers outside the U.S. within a few days, when you normally receive only two international orders within a month.

5An order consists of multiple requests for the same item

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 several of the same product.

6Several orders from different customers are shipped to the same address

Fraudsters often steal credit cards from multiple people and ship the orders to a single address.

7The billing and shipping address don’t match

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.

8A customer asks you to change the shipping address after the order has been paid for

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.

Tip: For PayPal merchants, keep in mind that if you decide to ship to another address, the purchase will no longer qualify for PayPal Seller Protection.

9You receive multiple credit cards for the same order

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.

10A customer asks for rush or overnight shipping

Fraudsters like to receive merchandise quickly, regardless of the cost.

11The email address looks suspicious

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.

12A customer overpays you

If someone overpays you, don’t send the extra money back through a wire transfer, online banking transfer, or a preloaded money card. Overpayment scams are common. Instead, return the money through PayPal.

13The shipping address looks suspicious

Before shipping an expensive order, make sure you know where the order is being shipped. Fraudsters may ship orders to freight forwarders, shipping companies, PO boxes, or vacant properties so they can remain anonymous.

Check out more resources on how to help prevent fraud.