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Staying Ahead
of Online Fraudulent Tactics - Prevention against Fraudulent Transactions
via Internet
A statistical survey in 2005 revealed
that damage derived from fraudulent transactions via Internet was estimated
at some USD13,863,003, more than double the damage recorded in 2004
(totaling USD5,787,170) In light of increasing online fraud transactions,
protective measures should be prepared to minimize any risks that may
arise from such fraudulent tactics. In detail:
Check
purchase orders regularly
Spend more time checking
your purchasing orders - minimize opportunities for fraud
Fact: Authorized credit
cards (on which purchases and transactions are approved by issuer banks)
refer to credit cards that contain sufficient credit allowance to make
the purchase in question, though the transaction may prove to be fraudulent.
To avoid this, regular checks of your purchase orders should always
be made before bill settlement.
A recommended method is to check the
"Origin of Order". Cancellation should be made if you are not certain
of the origin of the order. For further information, please view your
Online Merchant Report before clicking on the Menu Transaction List.
Then, click Details that pertain to each Transaction as shown in the
screen below:
Useful
information:
1.
"Issuer Country" is the country where a credit card issuing bank is
located, which can be checked via K-Payment Gateway system.
2.
"Selected Country" is the country where the credit card issuing bank
is located as used by the credit cardholder.
3.
"IP Country, IP Region and IP City" is the country, region and city
where the purchase order (s) was/were made by customer.
If irregularities are
found, i.e., discrepancies between the Issuer Country and Selected Country,
or between the IP Country and the delivery address, you should recheck
the information with your customer before bill settlement.
Know
your customers
You should create a membership system to be used as a
database and tool to check purchase orders.
If your website does not
have a membership system, the accuracy of purchase orders should be
verified by creating a form for the customer to fill in his/her name
and the place of delivery. Then send it to your customer to have him/her
sign their name the same as the signature appearing on the back of credit
card. Request him/her to return the form together with a photocopy of
their credit card to you via fax as confirmation on his/her purchase
transaction and verification of correctness of the issuer bank and credit
cardholder.
If you cannot use such
a form to confirm the purchase order, you should contact your customer
via phone or e-mail to verify the information. However, you must be
aware that sometimes customers' free e-mail (for example, hotmail or
yahoo) cannot be used to verify clients' information.
Cases
you must take special caution!!
If you encounter the
following purchasing orders, you must exercise special caution.
- Purchase orders whose delivery addresses
are different from payer's address.
- Customers who use free e-mail or
anonymous e-mail addresses.
- Purchase orders from internationally,
or those that require delivery to international addresses.
- Purchase orders that provide abnormally
little information about the buyer.
- Purchase orders that order goods
in abnormally high volume.
- Purchase orders that require expedited
delivery.
- Purchase orders for a broad variety
of goods but uses only one credit card number.
- Purchase orders for a lot of goods
of the same style.
- Purchase orders from the same buyer
but with many credit cards.
- Purchase orders made by card from
the group of risk countries such as Nigeria, Malaysia, Russia, etc.
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