Top five fraud patterns that risk managers should watch out for


Fraud is always related to a purposeful intent committed by a human being utilizing techniques of deception and trickery. Fraudsters are constantly one step ahead of the game, therefore risk managers have to keep up with the most recent fraud patterns. We have collected five crucial scam elements that fraud managers should be aware of.

Fraudsters use VPN’s or bad proxies

Fraudsters commit the primary error of using a VPN or a bad proxy connection throughout a transaction. They use these tools in order to mask their residential IP address, resulting in an anonymous connection. Not all VPN or proxy users are dishonest clients, therefore several other determinants have to be taken into consideration when analyzing a suspicious situation.

Fraudsters use email addresses with no history

Another major mistake that fraudsters tend to make is the use of an e-mail address that is rated to be risky. This means that the e-mail address in use lacks any related social media profiles, may be disposable or is blacklisted. Online customers tend to buy products using their personal e-mail address. This means that the address will be registered to at least a couple of social media websites and will most probably not be disposable. In the case of corporate addresses, checking the creation date of the e-mail address and verifying the domain are also relevant factors.

Fraudsters buy expensive products

Fraudulent users are likely to buy expensive electronic items that can easily be resold at a later time. Solid State Drives (SSD) and Apple products are generally of high demand in the carding community as they have a high resale value. Vouchers and gift cards are also among the most common digital products to be carded as they can easily be resold for digital currency on the dark net markets. Fraud managers should keep an eye out for these types of goods from popping up on the transaction lists.

Fraudsters spend too little time on the website

Ordinary consumers tend to browse online throughout their shopping experience. They read reviews, check alternatives before actually placing the order. On the other hand, fraudulent users know what they want and specifically place a single item in their shopping cart, the item that is later going to be chargebacked. Time spent on the website is certainly an important factor to watch out for when monitoring for fraudsters.

Fraudsters tend to commit a series of small transactions

After having bought or stolen a fresh list of credit card (CC) information, dishonest users have to make sure that their cards are actually functioning. Generally they validate this by conducting several low value transactions with different cards after one another. The low fees usually don’t trigger chargebacks from the legit account holders as the these transactions are not conspicuous. It is best to watch out for numerous low fee transactions taking place in a sequence.

Fraudsters are using sophisticated methods in order to harm businesses. This results in high manual review times and massive chargeback rates. Nowadays it is crucial for online merchants and payment service providers to rely on third party assistance in order to mitigate their transaction related risk. The fraud management system of SEON enables online businesses to gain a deep insight into their transactional fraud patterns. It is vital for fraud managers to use a custom tailored risk scoring solution that enables them to improve their bottom line and boost their conversion rates.

19 thoughts

  1. Greetings! Very helpful advice in this particular
    article! It is the little changes that make the largest changes.
    Many thanks for sharing!

  2. Have you ever thought about publishing an e-book or guest authoring on other websites? I have a blog based upon on the same ideas you discuss and would love to have you share some stories/information. I know my visitors would appreciate your work. If you are even remotely interested, feel free to shoot me an e-mail.

  3. Appreciating the time and effort you invested in the website and detailed material you present. It really is good to come across a blogging site every now and then which isn’t the same obsolete re-written information. Wonderful read! I have saved your site and I am including the RSS feeds to my own free vidmate app web page.

  4. Hi there, just turned into aware of your weblog via Google, and located that it’s really informative. I am going to be careful for brussels. I will appreciate should you proceed this in future. A lot of other folks will probably be benefited out of your writing. Cheers!

  5. ?’m really loving the theme/design of yyo?r webb site.

    Do yo? ever run ?nto any browser ?ompatibility probl?ms?
    A number of my blog readers ha?e complained about my blog not working correctly in Ex?lore? but lo?ks great in Firefox.
    Do you ha?e any ideas too help fix this issue?

  6. Thanks a bunch for the awesome article! I seriously enjoyed finding out about it.I will remember to save the site and will come back later on. I wish to encourage you to ultimately keep going with your nice job, perhaps discuss bluestacks download for windows 7 also, have a nice afternoon!

Leave a Reply

Your email address will not be published. Required fields are marked *