Top 5 Ways to Spot Suspicious Orders
Transaction fraud is a reality that every eCommerce company faces. In fact, Juniper Research estimates that retailers will lose $130 billion between 2018 and 2023 to CNP fraud. Fraud prevention solutions continue to find new ways to battle online fraud, but many merchants remain unaware of the most common risk factors on any order. Knowing what indicates fraud could mean hundreds of dollars in savings between lost labor, product, and fees. Here’s our shortlist for common ways to spot suspicious orders in any online business.
1. Multiple purchases in a short time frame.
2. Missing or incorrectly spelled information.
While typos happen to everyone, any order that has major misspellings or errors is probably fraud. Even seemingly simple misspellings on names and addresses should be verified. Real customers will have no trouble doing so, and this will stop many bots and fraudsters. The same is true for missing information. By requesting that your customers verify orders that have minor issues, you are showing that their protection is your priority. Plus, taking the time to make sure the orders are correct early on can save you if chargebacks are initiated or other problems occur later.
3. Address known for mail forwarding.
4. Unusual navigation patterns.
Unlike the other methods on this list, this one may require a bit more research unless you have software that checks for behavioral analytics. However, it can be a great indicator of fraud. If you have a suspicious order, check the navigation pattern. Unexpected activity will likely mean fraud. For example, customers do not enter a site through the checkout page. If you notice this is the first page of a session, it is likely a bot. Also, an order may be completed quickly if the customer came directly to the site for a specific product. However, in general, it will take customers more than a minute to enter the site, find the product, decide to purchase, and complete checkout. Any order completed in less time than that should be verified.
5. Bulk purchases/Unusual purchase pattern
Jackie Long is Blog Manager at NS8, a fraud prevention solutions company. NS8 provides abuse, fraud, and user experience protection tools. We use behavioral analytics, real-time user scoring, and global monitoring to optimize and protect against threats and give firms a better insight into their real customers. Visit www.ns8.com to learn more.