| A list of simple fraud prevention measures a merchant | | | | entered may appear to be of a domain, such as |
| should observe. | | | | mike.sanders@mynigeria .com. In such cases the |
| 1. Billing address entered by a customer should be | | | | merchant needs to verify the authenticity of the |
| verified and compared with the automated Address | | | | domain, by pre-fixing with a www ( in the URL of a |
| Verification System (AVS), which has a | | | | browser and if it is an existing domain, the address |
| complete profile of a credit card holder including the | | | | indicated in the website needs to be compared with |
| address to which monthly statements are sent, an | | | | that of the billing/shipping address, for example if the |
| Address Verification System should be a part & | | | | website has a US address and the billing /shipping |
| parcel of any payment processing equipment or | | | | address leads to Nigeria, then caution needs to be |
| software, a merchant should observe this as a | | | | observed. |
| mandatory exercise. | | | | And as an added verification process, if the domain |
| The AVS was created to shield MOTO (Mail Order / | | | | appears to be legitimate with no mismatch of the |
| Telephone Order) businesses from fraud, but the | | | | address, a further check in WHOIS will certify the |
| process is limited to curbing online fraud, the internet | | | | genuineness of the domain; there are many domain |
| provides a window of opportunity for global | | | | registration websites where WHOIS checks can be |
| commerce, however for the moment the AVS is | | | | processed. |
| available for US addresses only. | | | | 5. A merchant should be vary of orders that appear to |
| The internet has benefited companies that market | | | | be different, instances where unusually large quantity |
| software online, it allows customers to buy the | | | | of the same product is being ordered or when the |
| software and instantly download it, the AVS | | | | customer offers to pay an extra charge for expedited |
| unfortunately does not provide protection to a | | | | shipment. These orders can be cleverly spotted for |
| merchant in this case, the identity thief will have | | | | the unusual ordering pattern, which tend to be different |
| address particulars of the fraudulently acquired credit | | | | from the day-to-day legitimate ones. |
| card and because the transaction has no merchandise | | | | 6. The other solution to confirm the authenticity of the |
| to physically deliver, these companies become easy | | | | person placing the order online is to call the customer |
| victims of fraud on the net. | | | | on the telephone, and summarize the order details, this |
| 2. It is therefore very important to ensure that there is | | | | verification more or less establishes the genuineness |
| no mismatch in the shipping address and the billing | | | | of the person placing the order. |
| address. Many merchants do not accept orders which | | | | 7. It is in the fitness of things to collect as much data |
| have a billing address that is different from the shipping | | | | as possible on the order placed, a verification of the |
| address, this policy is confined to international | | | | customers address and telephone number, the credit |
| customers as well as domestic customers. | | | | card issuing bank details and the IP address of the |
| There are instances where a customer has to call an | | | | computer, are some of the basic checks that will help |
| online merchant and provide verification details, | | | | prevent or even tracking fraud, some of the |
| because the merchandise ordered was to be | | | | verifications need to be done indiscreetly and these |
| delivered as a birthday gift to another city, and in | | | | should be done by an agency that has all the possible |
| instances like these the billing address will obviously be | | | | data on fraudulent credit cards in circulation. |
| different from the shipping address. | | | | 8. A prominently placed warning on the website stating |
| 3. Another important verification feature for a | | | | that fraud detection software is protecting the website, |
| merchant is to keep a check on orders which have a | | | | and fraud will be tracked and prosecution proceedings |
| free subscription email address. Many fraudulent | | | | will be initiated. This will deter potential fraudsters. |
| transactions more often have these email addresses, | | | | 9) The never process (factor) for someone else |
| because a free sign-up to these email domains does | | | | should be scrupulously observed, it is a breach of |
| not require a process in which the antecedents of the | | | | agreement that can cost the company dearly. |
| user can be verified. Additional checks need to be | | | | 10) Offering real time service to customers will help the |
| done for customers using these email accounts, | | | | online business grow; a professional customer service |
| although not all of them can be fictitious. | | | | pays and wins the appreciation of millions of |
| 4. There are instances in which the email address | | | | customers. |