How to detect a fraudster

How to detect a fraudster

There are situations where it makes sense for you as a merchant to be particularly on your guard. We describe the signs of possible fraudulent behavior in e-commerce, how you can prevent it and what you can do if you have definite grounds to suspect fraud.

Above all, we recommend checking the order more closely if you can say yes to several of the following points, because these scenarios could conceal fraudulent intent:

  • The customer places several orders within a short time.
  • The customer makes unusually expensive purchases.
  • The customer orders the goods with express delivery or overnight delivery.
  • The customer purchases particularly popular products that are easy to re-sell, such as electronic equipment.
  • The IP address of the computer used to place the order, the delivery address and the card details of the customer are in different countries.
  • The customer backs out of the purchase and asks for the refund to be paid into a different account.  

What preventive measures can I take?

  • Your customers pay using the 3D-Secure security procedure in your online shop. This requires them to enter an additional personal password. All of our products are automatically connected to 3D-Secure.
  • You can apply your own risk management settings to your online payment solution. For example, you might specify that a maximum of three orders per IP address can be processed within 24 hours.
  • Check the transactions at the end of the working day before implementing your daily closing procedure.
  • We recommend that you set up your own review process. You could decide to review every order over CHF 500, for example.
  • Always pay refunds to the credit card that was used to place the order. 

What should I do if I suspect fraud?

  • Check the address of your customer in the telephone directory. Does the address they have given actually exist, and is the name of the resident known at this address?
  • You can also ask SIX to check a customer's address by fax
  • Draw up an internal list of customers with whom you have had negative payment experiences. Check the order against this list.
  • Contact the customer and ask them to send you a copy of their identity card or of their latest credit card statement.
  • You can insist on payment in advance or refuse to sell to the customer. 

Contact us if you suspect fraud. Visit our website for full information and the telephone numbers of our Support Hotline.