Fraud Prevention Tips for Ecommerce Sites


Given the existence of IP address validation, BIN matching, and other techniques, fraud need not be a fact of life when you’re operating your own e-commerce site. It is pure horror when you suddenly find out that the bank reverses a transaction, or PayPal suspends your account pending an investigation. But there are considerations and preventive methods to improve selling online, especially if you are a start-up or small website owner. Here are three advanced steps to reduce or eliminate online fraud.

Blocking free email addresses is a great leap. Did you know that this one step alone will immediately eliminate over 90% of credit card fraud? Anybody can get a free Hotmail or Yahoo email address, and a fake order can easily be on its way. And since everyone using the Internet has either a work email address or an ISP email address, you can easily do this to avoid credit card fraud and mounting frustration.

Bank Identification Number or BIN country matching counts a lot, too. This, though, only applies to website owners with their own merchant facility. The BIN is the first six digits on a credit card, and it is used to identify the bank that issues the said credit card. Publicly available databases services store BINs, so it will be easy to run a check on a customer’s BIN and report any discrepancy in data if you have a well-optimized e-commerce payment page. Give BIN validation services a try today.

IP address country matching and IP locator services are other tools you can explore. Every Internet user has a unique IP address, and this number looks like: 1. 62. 255.255. You can find out yours simply by typing in “What is my IP” on Google.

As IP addresses are assigned regionally, IP address validation results reveal what city or region you live in. Optimize your shopping cart payment portal by running a check on the user’s IP. If the credit card is from the United States and the IP address dictates that the user is from an Asian country, then you definitely have a problem going on.

Validating IP addresses coming into your e-commerce site is a major leap in preventing fraud. You can ensure greater security and instant insight – immediate contact verification is set in place. Customer engagement is increased as well, since IP geographic data can be used to customize geographically-focused offers per specified regions.

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