Tag Archives: online fraud detection

Using Custom Inputs to Refine your Response to Fraud

Online fraud is a complex, hard to detect, and constantly evolving type of crime with serious business consequences. While many e-commerce merchants are looking for new ways to engage with customers, fraudsters are also looking for new ways to exploit them. In a way, every touchpoint you create – from buy online/pick up in store options to social click-to-buy ads, mobile shopping to loyalty rewards programs – is another opportunity for cybercriminals to bypass your fraud screening.

Continue reading

Case Study: Reducing Chargebacks Using the minFraud Service

Thexyz, a Canadian company, provides a secure email service. This paid platform gives customers an email address that is secure and private while keeping the user experience ad-free.

Introducing the minFraud service had a dramatic effect on their chargeback rate. Here’s their story.

Continue reading

Behind the Scenes: High Risk Shipping Addresses

Just like good customers, fraudsters must provide a shipping address in order to receive merchandise. But fraudsters, who need to evade detection and efficiently resell stolen goods, leave traces in the shipping addresses they use. The minFraud Network collects data on shipping addresses and uses it to identify any high risk shipping addresses associated with the transactions you submit for review.

This blog post investigates some high risk shipping addresses known to MaxMind, as well as provides some general fraud review tips for identifying them.

Continue reading

How to recognize legitimate proxy use
and reduce false positives during order review

As a merchant, you’ll frequently see cases where multiple orders with different billing addresses and payment methods are placed from the same IP address, and it’s not clear whether or not this indicates fraud.

Such activity could be a sign of fraud, with a fraudster testing multiple compromised credit cards. It could also be a sign that a fraudster is using a proxy to obscure his identity. There are times though when such activity is expected and flagging such transactions as fraudulent would mean denying good orders and frustrating customers. Continue reading

Manual Review Best Practices:
Get More Data for a More Informed Decision

Thus far, our Best Practices Series has discussed how you can use the data provided by the minFraud service for better decision making during manual review.

But actionable data from minFraud starts with the inputs you include with each query.

The minFraud service requires that each query include the IP address associated with the transaction at a minimum; as best practices, MaxMind recommends you send as many data points as possible.

The more data points you provide, the better the riskScore and the more information you make available to your fraud analysts as part of the manual review process. Continue reading

Manual Review Best Practices: What’s the Value of Assessing IP Address Risk?

In this blog post, we continue our discussion of best practices for manual review. Today’s topic is assessing IP address risk.

A fraudster (or indeed, anyone) placing an order on a website uses a device (computer, mobile phone or tablet) and this device is associated with an IP address.

In our last blog post, we discussed how the physical location of the IP address can be matched against other location information to see if anything looks suspicious. For example, it’s best to closely scrutinize orders where the location of an IP address is in one country and the billing address in another.

Fraudsters recognize the power of geolocation in identifying fraud, so they act to hide their actual IP address and, by extension, their geographic location. The best way for them to take cover is to connect to the Internet using a proxy server. Popular hiding places include open proxies, hosting providers and VPNs. Continue reading

How to Use Geolocation to Identify Higher Risk Transactions

In our last blog post, we discussed how you can use a risk score to automate fraud screening, saving you time and money.

In this blog post, we begin our discussion of manual review best practices.

Studies show that, in North America, one in four orders on average receive extra scrutiny through the manual review process. The goal is to prevent the expense of chargebacks and customer issued credits associated with fraud. At the same time, you need to ensure that legitimate orders are not rejected unnecessarily, and estimates suggest that this is the case with up to 10% of orders. Rejecting good orders negatively impacts the bottom line, and drives away good customers.

During manual review, fraud analysts examine data associated with an order to assess how likely it is to be fraudulent. One key area of data points to consider is that of geolocation. Continue reading

MaxMind Speaking at MRC. March 24, 2015 – Mark Your Calendar!

MRC_Vegas_15(Logo) (1)

MaxMind, the industry-leading provider of IP intelligence and online fraud detection tools, has been invited to present at the 2015 Merchant Risk Council (MRC) eCommerce Payments & Risk Conference in Las Vegas. Our co-presenters will include two of the world’s most prominent eCommerce companies: Orbitz, a leader in the online travel industry, and Western Union, a global money transfer giant. MRC’s own Global Director of Programs and Marketing will bring his extensive industry experience to the presentation as well. Whitepages Pro, one of the major providers of contact information in North America, will moderate our lively presentation.

cropped-cropped-maxmind_logo.png   Western Union  Orbitz  White Pages Pro

Manual Review Best Practices
Learnings from Peak Buying Times in 2014

We invite you to attend this panel discussion to learn more about best practices for preparing for, executing and evaluating your manual review processes. You’ll benefit by hearing specific examples of unique situations and fraud trends that caused online merchants to alter their tools or procedures. You’ll also have the chance to review some questionable transactions and engage in discussion about whether to approve or reject them.

Mark Your Calendar!
March 24, 2015
1:30 p.m. – 2:15 p.m. PT
Aria Resort, Las Vegas

We hope to see you at the Presentation or just stop by booth #422 and say, “Hello!”

Contact us today at mrc@maxmind.com to schedule a meeting during the event. We look forward to seeing you at MRC’s 2015 eCommerce Payments & Risk Conference – the largest professional development and networking event for eCommerce payments and fraud professionals in the Americas.

Proxy Detection – Why Fraudsters Give Proxies a Bad Name

When it comes to fraud detection, finding proxies is a big topic. But why? Fraud detection begins with thinking intelligently about the IP address associated with a transaction. Where is that IP address, and how does that location relate to other transaction data? Whereas most IP addresses inspire confidence, those associated with a proxy generate suspicion.

Let’s take a closer look at proxy detection. Continue reading