You can grab a quick look at the world map below, in which darker red means, wellred alert.
So here it is, the top 25 most fraudulent countries (read: reported IP address as the country of origin) in the world. Guess what? There are 4 Southeast Asia countries listed led by Malaysia at 7th, Philippines at 10th, Indonesia at 14th and followed by Singapore at 16th.
3. United States
21. United Kingdom
What are the general behavior of fraudsters?
It is surprisingly easy to acquire stolen credit cards so how do we identify the behavior of e-commerce fraudsters?
Sift Science provides 5 fun fraud facts (well, fraud is not really fun you know) to detect fraud signals as below:
How to prevent e-commerce credit card frauds?
As an online merchant, you wouldn't want to imagine getting a fraud order in which you will lose the (expensive) item that you ship out without getting payment, not to mention getting a chargeback fee.
Besides the characteristics mentioned above, we would like to share 7 layman, not-so-technical, easy to understand tips on how to minimize the risk of credit card frauds for online merchants.
- If you are just going to start selling online, choose a webstore that provides fraud alert system. As for online marketplaces, the established ones usually have pretty good fraud prevention measures in place.
- Engage with the right payment gateway or processor, work with them on negative list, maximum transaction allowed per order etc. especially if your volume (and risk) is getting higher.
- Liaise with your payment gateway to accept only 3-D Secure (a.k.a One Time Password) enabled credit card. You might also want to block foreign cards with potential high risk.
- Always be extra cautious on big ticker orders, especially if the billing and shipping name / address is different. Call customers to verify when you are in doubt.
- For big ticket orders, pay attention on the shipping address whether it is a public area like restaurant where fraudsters are not attached to, just bear in mind that their fraud skills is always evolving.
- Make sure the delivery service you engage with (or if you are shipping it on your own) verify the customer's identification card and get the delivery order signed by the customer.
- In most cases, it is your staff rather than you who fulfill the orders so you need to educate your staff on all the measures above to minimize the fraud risk.