Situation:

A merchant selling PC to Phone services was being targeted by a fraud ring. This type of fraud is very tricky to catch. The orders appeared to look legitimate. The card BIN, billing addresses and I.P. addresses all matched. What tipped off the fraud analyst to further investigate this, was the spelling of the customers’ names, name placement, and the frequency of the orders. Most orders had a French I.P. address, but there was one with the I.P. of Côte d’Ivoire. This one mistake led us to believe this was fraud coming out of Ghana. Using some deeper methods of fraud detection such as Device Identification, we were able to connect the orders to each other.

Intervention:

• We added the account to our Fraud Monitoring program.
• The Fraud Monitoring Program is a program developed to provide a magnified look into the account. We monitor accounts who receive fraudulent orders regularly missed by our internal-automated Fraud System. Accounts that we see fraud chargebacks come in where the system approved the order/s. Representatives within the Fraud Department are assigned a list of accounts where they check the account daily, review the last day’s worth of sales to ensure the Fraud System didn’t approve orders it shouldn’t have. In the cases where we do find a fraud order approved by the system, as long as we are monitoring daily, we will have caught it within 24 hours. We can notify the merchant, and take corrective action. This provides an additional level of protection for our suppliers.
• The orders that are determined fraudulent are canceled before the funds have a chance to deposit.
• Weekly reports are generated and shared between the account analysts and supervisor to determine the program’s success and what other steps should be taken.

Results:

• We caught fraudulent orders that were previously approved and canceled them. We added those orders to our negative database. Adding the information attached to the order allows us to manually review new orders with identified fraudulent information. This process makes it harder for the fraudster to make repeat purchases using the same information.
• Creates a barrier from the fraudsters targeting one merchant with multiple orders with different information.
• Lowers the merchant’s fraud chargebacks
• Frustrates the fraudsters into moving on.

Nicole and LaShona 2Checkout Disputes Team