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How to identify a possible fraudulent transaction?
How to identify a possible fraudulent transaction?
Pam avatar
Written by Pam
Updated over a week ago

An online business comes with its own set of challenges in mitigating risks associated with fraud. As a merchant, you may have more relevant information about your customers and their activities. By paying close attention and continuously monitoring your transactions, you can identify possible fraudulent transactions at an early stage that will help mitigate risks and avoid business losses.

Here are some tips that may help you check if the transaction is possibly fraudulent:

  1. Suspicious Contact Information

    You might come across certain transactions that are using fake e-mail addresses, phone numbers, or addresses. In that case, there is a high possibility that these transactions are fraudulent.

  2. Expedited shipping requests

    For merchants offering expedited shipping, fraudsters may avail of this option to acquire the product or service provided as quickly as possible to avoid being under the radar due to fraudulent means.

  3. Shipping and Billing Mismatch

    Fraudsters may use different shipping addresses to pass verification checks while ensuring that they will get the product. Mapping the distances between the two addresses may help you decide if the order is possibly fraudulent. However, keep in mind that this may also be the case for legitimate transactions, like purchasing a gift.

  4. Surge in transactions

    An unexplained surge in transactions may be an indicator that card testing happened on your website. Verifying successful orders before shipping out can help prevent incurring losses in your business.

  5. Receiving a Fraud and Risk email alert from PayMongo

    Email alerts from [email protected] might indicate that there could be a fraudulent activity occurring in your business. These alerts request you to look closely into the transactions being inquired and to provide supporting documents to the Fraud and Risk Team about certain transactions of your business. This will not only help you identify possible fraud, but could also help PayMongo understand more about your business and your customers.

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