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Thread: Anyone using fraud prevention alternatives to Volusion's Fraud Score?

  1. #1

    Anyone using fraud prevention alternatives to Volusion's Fraud Score?

    Along with everyone else, we are having a real problem with fraud and it's impact is beginning to get unmanageable and too costly to justify the status quo. Because of the nature of how we process orders on Volusion during our peak season, we are unable to manually review our transactions before processing them. We capture and ship immediately and do this in an automated way via V's api which renders the Fraud Score process unusable to us. Does anyone have an alternative method? Is anyone using their gateway's fraud prevention service that is working with Volusion? Volusion has documented that AuthNet's Fraud Suite is not compatible. Thanks for your help.

  2. #2
    Quote Originally Posted by danna View Post
    ...we are unable to manually review our transactions before processing them. We capture and ship immediately and do this in an automated way via V's api...
    Problem solved! There is no software that replaces human eyes on your orders. If you want a low fraud rate, you must review your orders. What you'll spend to train or hire someone to review your orders is likely less than what you'll lose to chargebacks, bad reviews, and bad reputation.

  3. #3
    Well actually, the problem isn't reviewing the ones which are at risk. The problem is changing our entire automated system to not capture and ship immediately all of our orders. This would compromise our service offering. What we want is to continue to process the safe orders the way we do now without interruption, then review the ones at risk before processing. And ideally, with a good fraud detection tool, decline those that are high risk immediately.

  4. #4
    Right - you have to stop auto-processing. You could be sending packages to Mickey Mouse for all you know, right? Your process may be fast, but it does not sound safe or - forgive me - smart.

    Suppose you have some program or software that logs in through the API and processes orders automatically. You could start by changing that program to only process orders marked as Pending, for example. This would allow you to go through your orders and change them from Processing to Pending once you've screened them. That screening process could consist of any number of steps. Additionally, you may want to exclude auto-shipment of orders with AVS responses that aren't "Y" - these will always need review.

  5. #5
    I agree with Dean. If you want to prevent or lessen the effects of fraud, you have to slow down and review each order. For instance, with international orders, see if the town they are providing as a ship to address is actually in that country, and not in Indonesia, or Malaya, etc. Just type in the name of the town in Wikipedia and see what comes up.

    Second, unless we know the customer intimately, we no longer ship to alternate addresses, only the billing address. If it turns out to be fraud, the credit card company will not back you unless you ship to the billing address. You will likely lose a few orders, but it may be worth it in the end of most of these lost orders turn out to be suspect.

  6. #6
    Thanks for the input. There's not a quick fix for us as we would have to restructure our current processes, but clearly we need a solution. I do think that if we could continue to complete our low-risk orders at the same time we are reviewing or declining our med and high-risk ones, that would be the most efficient and beneficial all around. You are correct Dean that we are using an automated process via the api and would need to customize it. But how to achieve this I'm not sure as I don't believe we have access to fraud scores via the api. We really want to avoid manually reviewing and marking EVERY order. That's what a good prevention tool should do. ~cheers

  7. #7
    Quote Originally Posted by danna View Post
    ...I don't believe we have access to fraud scores via the api.
    Check with support on that. Fraud score is a column that you can display on the Admin > Orders table, so I would think it could be pulled via the API.

    But still, doing that won't catch something like, say, a first time customer with a billing address in California, shipping Next Day Air to New York, with different names and a high dollar amount. That's a red flag that a human tends to catch and that can slide under the Fraud Score radar (I've seen those get missed).

    If you find a solution, consider coming back to share it with us

  8. #8
    Quote Originally Posted by Lightning2000 View Post
    I agree with Dean. If you want to prevent or lessen the effects of fraud, you have to slow down and review each order. For instance, with international orders, see if the town they are providing as a ship to address is actually in that country, and not in Indonesia, or Malaya, etc. Just type in the name of the town in Wikipedia and see what comes up.

    Second, unless we know the customer intimately, we no longer ship to alternate addresses, only the billing address. If it turns out to be fraud, the credit card company will not back you unless you ship to the billing address. You will likely lose a few orders, but it may be worth it in the end of most of these lost orders turn out to be suspect.
    We are dealing with a lot of fraud or seemingly fraud orders, and one question I have is I know that when I have ordered items of high value, they would only ship to an address that is on my credit card (so if it was alternative it had to be added to my card with a phone call). How would us, the Merchant, verify this information to allow for alternative shipping addresses? Presently we request on anything that seems fishy or high value that they fax us a copy of their drivers license so we can tie something of proof back to the person who made the transaction.

  9. #9
    We have required ID and other documentation, and have gotten perfectly looking ID that is fraudulent. So be careful, especially on high value shipments. I find giving them a call, and talking about the order a bit often makes the fraud cases stick out. Watch out for people with Google Voice numbers, especially with no customized message.

  10. #10
    What we have right now is a 5K order that we had no problem talking to the customer at first, then we asked for a copy of license and if they wanted a partial shipment and they just replied Yes. The odder part is that we have had their funds for almost 45 days (we will sit on a shipment for a little while just to see if anyone tries a chargeback when it's this high value), and we call daily to their office which the receptionist just keeps stonewalling. We have advised the order will not ship until we can confirm and speak to the customer, and that doesn't seem to be a bother.. that's the really strange part - if you paid 5K for something and then didn't get it within 45 days and the company was very active in trying to reach you, wouldn't you want the stuff? We do the best we can with Google Maps, IP Addresses, etc to confirm details but this shipment is going from PA to CA. Just odd stuff out there - wish there was a better way to stop these transactions before they ship out.

  11. #11
    >What we have right now is a 5K order t
    If they are paying via credit card, you can have your credit card processor contact their credit cards bank to contact them to verify.

    >we are having a real problem with fraud
    Process the orders as usual, but do a parallel fraud score / manual review of each order. The worst case is you pull the package from your loading dock.

    What Dean mentioned about the API customization sounds like the best way to do it.

  12. #12
    Danna.

    Are you requiring AVS? CVV2?

    We use Authnet's fraud suite. It is not intended to be integrated with Volusion. We get warning emails from Authnet based on how we set it up.

  13. #13
    Authorize.net fraud suite is good for:

    1. Setting a velocity (it stops somebody from trying 200 times, racking up charges, to find a good credit card number).
    2. You can also ban IP addresses
    3. You can set limits on the amount of orders per a set period of time.

    Volusion's is different, where you get a fraud score per order if you pay for it.

  14. #14
    I got the Volusion fraud score, along with SSL. For a few weeks it only gave me the exact same score for all orders. It's a small and new site, so only 2-3 orders a week, and no chargebacks yet.

    Quote Originally Posted by ritchey View Post
    Authorize.net fraud suite is good for:

    1. Setting a velocity (it stops somebody from trying 200 times, racking up charges, to find a good credit card number).
    2. You can also ban IP addresses
    3. You can set limits on the amount of orders per a set period of time.

    Volusion's is different, where you get a fraud score per order if you pay for it.

  15. #15
    Ideally, you should only ship to the billing address. Ideally, you should get a CVV match before authorizing any charges.

    We use Volusion Fraud Score because it helps us catch the blatantly obvious fraud orders. Our average attempted fraud order is $500-$800 so its worth some due diligence. We batch print out of Volusion (authorize at order placement, capture after batching) and thus essentially screen every order. It can be somewhat tedious but it isn't terrible.

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