Every order counts when it comes to running your online store, especially fake ones that waste your time and money. Watch today’s episode to learn 5 red flags that help indicate fraudulent orders.
Like it or not, there are lots of not-so-nice people out there looking to take advantage of you and your online store by placing fraudulent orders. When you process falsified orders like these, you’re out of time, money and inventory – and that’s never a good thing.
Fortunately there are several warning signs that you can use to identify ecommerce fraud before it happens. To learn how to detect fraudulent orders and better protect your business, check out today’s episode for five tried and true tidbits.
-Matt Winn, Volusion
Here’s the transcript if you’d like to read along:
Hi, everybody! My name is Matt, Social Media Manager here at Volusion. Welcome to Two Minute Tuesdays, where we bring you two minutes of ecommerce advice to bolster your online success.
Now when it comes to ecommerce, every dollar counts, so you want to make sure that your dollars are not being taken advantage of. With that in mind, today I present you five warning signs of credit card fraud.
First on our list, look for orders that have amounts that are a lot higher than your average order value. For example, if you’re selling T-shirts and you’re used to getting about $40 per order, and then all of a sudden someone orders 300 T-shirts for $3,000, that’s probably a sign of a fraudulent order. You might want to contact them and check on that.
Now along the same line, look at the actual items in the cart themselves. If you’re selling handbags and you see 14 Louis Vuittons, it’s probably a sign of a fraudulent order. Again, you might want to follow up on that one.
Number three, if you see an order that has overnight or rushed delivery, it might be a cause for concern. Why? If you ship the product out, it gets to them a lot faster, which means that you have less time to check on the fraudulent order. So definitely go through, follow up and if you have those coming through quite frequently, it might be a sign of fraud.
Number four, and this one is really big, look for orders from high-risk geographies. For example, some countries in Africa, Eastern Europe, even in cities in the US, like Las Vegas and Miami, are known for a lot of credit card and Internet-ordering fraud. So take a look at where the order is coming from, and that will be a good guide too.
And last but not least, always look for sketchy email addresses. Now granted, these usually come from free clients, like Hotmail, Yahoo, Gmail, etc., but really look for the user name before the @ symbol. If you see a lot of strange characters, a lot of numbers, random alpha numeric characters, look out for those, because that is usually a fake email account, which will also be tied to a fake order.
Hopefully, these five red flags will start waving and prevent you from having any fraudulent orders. If you see something, feel free to reach out to the customer, give them a call, shoot them an email and always make sure to follow up.
If you have any questions about ecommerce fraud or anything else, leave me a comment in the box below. I’ll get right back to you.
From me to you, happy selling!