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Thread: Fraud Score

  1. #1

    Fraud Score

    So, for those of you that use Volusion's Fraud Score I have a question for you. What do you consider to be a suspect return percentage on an order that might lead you to question the validity of the order?

    Earlier today, we received a domestic order with a score of 86%, which was highlighted in red. It happens to be from a customer that placed two previous orders with us. The amount of the order wasn't all that substantial, I think less than $50, but at what point would you pull the order and start to ask questions. And if you did contact the customer, what would you say? "We have reason to believe you don't pay your bills on time, utilize too much credit, are a credit risk...?"

    Marc

  2. #2
    Marc,

    I think the Fraud Score algorithm was updated not too long ago. Apparently, I am still on the "old" one (??) A Volusion support person could neither explain or tell me how to change it. I gave up. I think the numbers are reversed? A high score is a high risk and a low score is good? For me, a high score is a low risk.
    That said, I am not sure that comparing numbers works, but I will tell you how I do it. I don't bother until it is "red" or says Moderate Risk or worse. Then I have a look at ... have they ordered before (and what was the payment method/score then); I do an IP address look up to see location where the order was placed. Sometimes people out of the country will place an order to ship to what is most likely an "overseas shipper" at a U.S. mailbox... typically in Miami/L.A./NY.
    Also, I find that frequently Paypal payments return rally low (high risk) fraud scores. These seem bogus to me and the V support person told me it was because I was on the "old" system.

    Then I'll try to contact the person via email and/or phone. If they don't reply and there is no answering machine, I cancel the order. I'll ask via email for them to confirm the mailing address.

    I think only once was I burned and then I successfully(!) argued that the credit card company accepted the payment and all the info entered matched their file, so it was on them and not on me.

  3. #3
    Thanks for your input. I too attempt to match the IP address with the billing/shipping address. Several years ago, I got burned when we shipped to an alternate address, only to learn the CC companies don't provide protection should you decide to ship elsewhere. Since that time, I only ship to the billing address, unless I feel relatively secure that the customer is legit. If its a new customer, and they want something shipped elsewhere, then they can pay by money order or bank check. Otherwise, no way.

    What I was wondering, however, is if a fraud score performs a "soft hit" on someone's credit rating, checking to see what his/her overall score is and relative ability to make their payments. Some people literally lose control over their compulsions, racking up excessive debt when they should be paying it down. I'm not here to act as a credit counselor, but sometimes I feel as if I need to explain that the item in question will be around for awhile so why not take control of their lives first. Guess its a guilty conscience.

    Anyway, I'll keep an eye on the credit scores going forward, using it as yet another tool to reduce fraud. Melanie PM when you get the chance. There's also something you ought to use to reduce risk which helps tremendously.

  4. #4
    Since having been upgraded to the "new" fraud score, I am regularly seeing high risk (80% +) scores that show no high risk detail. I cannot explain these, and don't have a clue what to say to the customer.
    This is very frustrating.
    How do you deal with this?
    I have one that is rated 92%. In NC, billing & shipping same address; IP placed 21 miles away (probably at work). Email address has been around a couple years. Nothing untoward.
    Any ideas?
    I asked Volusion and they simple say it is not their software, contact the fraud software people. Of course, they have are no help either.

  5. #5

    Fraud Score

    Quote Originally Posted by MelanieF View Post
    Since having been upgraded to the "new" fraud score, I am regularly seeing high risk (80% +) scores that show no high risk detail. I cannot explain these, and don't have a clue what to say to the customer.
    This is very frustrating.
    How do you deal with this?
    I have one that is rated 92%. In NC, billing & shipping same address; IP placed 21 miles away (probably at work). Email address has been around a couple years. Nothing untoward.
    Any ideas?
    I asked Volusion and they simple say it is not their software, contact the fraud software people. Of course, they have are no help either.
    Hi Melanie,
    I too am not sure how they determine fraud scores. I've seen a 75% score for one person that I placed an order for and then a 20% score the very next day for the same person. I'm not sure if the score is conducting a "soft" credit check on a person (unlike a "hard" check conducted when you attempt to purchase a car or house which dings a person's overall credit score).
    I honestly don't know what to make of the scores. I also think ti should be turned off if the customer places an order through PayPal or AmazonPay since the funds are directly coming out of their online wallet. I opted for the lowest Fraud Score level, which provides for 250 scores. I may elect to turn it off at some point if I don't find it useful.
    How are you doing?

    Best,
    Marc
    Last edited by Lightning2000; 04-04-2018 at 11:44 AM.

  6. #6
    We turned off fraud score months ago as it was truly a waste of money. They don't offer any protection behind the numbers, and it's seemingly arbitrary. There are much more robust options but they don't easily integrate with Volusion. $220 a month with no bandwidth - how'd ya do that?!? We have been pushing them for months about bandwidth and site issues. They don't seem to care and offer no discounts or breaks. I was actually told it's cheaper to be on the grandfathered plan I have and pay overages instead of upgrading.

  7. #7
    Quote Originally Posted by MelanieF View Post
    Since having been upgraded to the "new" fraud score, I am regularly seeing high risk (80% +) scores that show no high risk detail. I cannot explain these, and don't have a clue what to say to the customer. This is very frustrating.
    I am also not loving the "new" fraud score functionality. As you noted, when we see high risk ratings - up to 99% in some cases - there is typically not anything in the details that explains why. And the orders are sometimes from customers who have been ordering from us for years with the same address/payment methods and no issues, so we have no reason to believe those are actually high risk.

    There was one order that had a 99% fraud score and the details page was blank - when we contacted Volusion to find out if it could be re-submitted like we could with the old fraud score to try to get the details, they were unable to do it. Their answer was "In this case the score is a reference but not a guarantee of fraud. You can still process this order if you want to." Ummm .. thanks I guess. Grrr

  8. #8
    I just turned off the fraud score.
    I think that authorize.net does a good enough job for my purposes.
    I have successfully argued with credit card company that if they allow the charge to be made, they have to honor it with the merchant (when the customer claims fraud).

    Just like so many things with Volusion... the old way was better. I am all for new and improved... but the new needs to come with "improved", not without it!

  9. #9
    I agree with Melanie - Volusion's fraud score system is junk. My packers can pick out a fraud order better than Volusion ever could. Humans just seem to be good at sensing this.

  10. #10
    I'm in agreement too. Unless it is performing a soft credit check on the customer, I can check if the addresses match or look suspicious based upon some information we already have. I'll likely ditch it this month since it returns high fraud scores for people I can vouch for which makes no sense from a business management perspective.

    Marc

  11. #11
    Kount (expensive) but has a really cool AI/bot and human driven solution. It's like 7K a month so way out of our budget, but a neat tool for merchants with unlimited funds or high chargebacks.

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