Question 1

What are the general fraud indicators?

Accepted Answer

Some of the most common fraud red flags include larger-than-normal orders, repetitive small orders, the same account but different shipping address, and the same shipping address but different cards. Other general fraud indicators include high-value transactions, different shipping addresses on one account, multiple cards from one IP address, and problems supplying personal information.

Remember this as a rule of thumb: if something feels offâ¦ it probably is.

Question 2

How do you identify eCommerce fraud?

Accepted Answer

Look for anything outside of the norm. This can be done using multipleÂ fraud detection tools, all backed by fraud scoring.

Question 3

Which is the most common incident of fraud in eCommerce?

Accepted Answer

Friendly fraud is a first-party, post-transaction attack committed by an otherwise legitimate customer. Merchants surveyed reported that friendly fraud was the number one threat facing their business in 2022.

Question 4

What are the âred flagsâ for friendly fraud?

Accepted Answer

Unfortunately, there are no consistent warning signs for a friendly fraud attack. It's post-transactional, so there's limited things you can do to prevent it.

Question 5

What is the most common method of identifying fraud?

Accepted Answer

The most common method of identifying fraud is the use of transaction monitoring solutions that use rules-based systems or machine learning techniques to detect and flag unusual transaction patterns.