Protect Your Business from Online Fraud: 10 Tips for Detection

Online shopping has seen a tremendous surge in popularity, with 96% of European consumers making online purchases in the last year.

To safeguard businesses from the negative impacts of fraud, it is crucial to implement effective fraud prevention practices. Accepting payments online is just the first step; the second step involves detecting and preventing fraudulent transactions. Know more about services for fraud detection online

How to Detect Fraud in Online Transactions

1. Use an Address Verification Service (AVS)

As online transactions are card-not-present, an AVS sends a request to the payment gateway, verifying user details with the issuing bank. Any mismatch in billing address and postcode requires further investigation.

2. Check Card Verification Values (CVV)

Matching the three-digit CVV on the card with the one entered at checkout is a step towards identifying fraudulent transactions. Asking for CVV in combination with AVS enhances security.

3. Implement 3D Secure Payer Authentication

3D Secure payer authentication, with its latest 2.0 protocol, adds an extra layer of security by requiring customers to provide at least two authentication elements. This can include something they know, own, or are, such as a password, card, or biometric data.

4. Verify Email Addresses

Checking the authenticity of an email through a reverse email lookup service can help identify potential fraud.

5. Use Device Identification

Analyzing unique fingerprints of devices, such as operating system and browser details, helps in blocking and detecting online fraud transactions.

6. Flag Large Transactions

Setting limits to automatically flag transactions exceeding a certain amount helps prevent large fraudulent charges.

7. Look for Patterns

Observing user behavior, time spent on a website, and device usage can reveal patterns that aid in detecting fraud.

8. Compare User Location and Shipping Destination

Legitimate transactions usually have matching billing, shipping, and IP addresses. Inconsistencies should be investigated, considering legitimate use of VPNs.

9. Check the Shipping Destination

For businesses shipping overseas, conducting due diligence and requesting extra verification in certain markets can mitigate the risk of fraud.

10. Be Aware of IP Proxies

Fraudsters often use proxies to hide their real IP addresses. Merchants can employ proxy piercing to identify potential fraud.

How Helps in Fraud Detection

To combat online fraud effectively, choosing a payment provider that offers detailed transaction data and support is crucial. provides an end-to-end platform that utilizes data to give businesses a comprehensive view of every transaction. The Fraud Detection Pro solution, equipped with machine learning, adaptable risk rules, comprehensive reporting, and robust testing features, is tailored to fit the unique risk profile of each business. This solution ensures businesses have the necessary technological tools to protect their transactions.

In conclusion, understanding and implementing these fraud detection measures are essential for businesses to reduce costs, safeguard their reputation, and protect their customers in the fast-growing world of online transactions.