Credit Card Fraud Prevention Using PHP and MYSQL Database

Credit card fraud has become pervasive on thefor e-commerce, orders from Ukraine, Indonesia,
Internet. According to MasterCard International, accountYugoslavia, Lithuania, Egypt, Romania, Bulgaria, Turkey,
takeover fraud has increased by 369% since 1995. ItRussia and Pakistan have a very high incidence of
has become one of the fastest growing types offraud, and often have unverifiable
fraud, and one of the more difficult to combat. Moreaddresses.Untraceable email address.
than $700 million in online sales were lost to fraud inIn many fraudulent orders, the customer's email
2001, representing 1.14 percent of total annual onlineaddress is often at one of the free email services, like
sales of $61.8 billion, according to GartnerG2. Even ifand yahoo.com, which are relatively
the credit card company has given the authorizationuntraceable.Expensive items.
as to the validity of the card, there are several waysBe wary of expensive orders, especially for
fraudulent cards can be used on your site. The cardexpensive brand-name items.Multiple items.
may have been lost or stolen, but the card owner isIt can be a bad sign, for example, if someone orders
yet to report its loss. Or the number on the card (andthree X-Box or three DVD players at once, especially
not the card itself) may have been lifted without thewhere the items have a high resale value.Express
knowledge of the owner. There is also a scam calledshipping.
identity theft, where the card has been issued underMost fraudulent orders specify overnight or 1-day
false pretenses using someone else's identity andshipping without hesitation.Shipping address differs from
data.As an online merchant, you need to have abilling address.
system to check the authenticity of orders placed toReceiving point and billing address are different in
safeguard your business. While the effort may requirefraud orders. If you are selling valuable items, it can be
additional time and money, it can save you the costa good policy only to ship to the billing address of the
and stress caused by charge-backs for fraudulentcard's holder.Suspicious billing address.
orders. You lost your physical products; you lose theThe address looks too simple or invalid. If the billing
sale price; you lose another business opportunity; andaddress is 123 Main St, New York, the order is
you will be fined an additional $15-$50 charge-back fee.probably fraud. You can use or online location tool to
If you have a high percentage of charge-backs, yoursee if the address can be verified.Leave at door or
card services company can even blacklist you andpost office box.
cancel your merchant account. You will also spendIf the courier service cannot guarantee delivery of
time looking up the order and provide the requestedgoods, the risk of fraud is very high.The advancement
information to your card services company. All ofof geo-targeting in the Internet allows us to pinpoint the
these hassles are things you can surely dogeographical region for an order. The information can
without.How can you protect your business from creditbe used to reduce the fraud by verifying it with the
card frauds? Here are a few steps that can be takenbilling address and delivery address. This method can
to ensure that the transaction is being requested byidentify the scenario where someone from country X
the real cardholder.Suspect shipping address.has stolen the credit card data from country Y. The IP
According to ClearCommerce Corporation, a provideraddress lookup service will reveal the real country
of payment processing and fraud protection softwareinstead of relying on the country filled in the order form.