- Orders made up of “big ticket” items.
- Orders that include several of the same item.
- Shipping to an international address.
- Transactions with similar account numbers.
- Shipping to a single address, but transactions placed on multiple cards.
- Multiple cards used from a single IP address.
What Can Retailers Do to Prevent Credit Card Fraud?
While credit card processors and retailers have made strides to combat credit card fraud, it is still rampant across the U.S. In fact, credit card fraud jumped 17 percent between January, 2011, and September, 2012, according to the most recent data from the FICO® Falcon® Fraud Manager Consortium. Debit cards obviously have better safeguard measures in place, since debit card fraud rose less than 1 percent between January, 2011, and September, 2012. Plus, the average fraud loss per compromised account fell by 3 percent. So, let’s look at where the problems with credit cards lie. Card-not-present (CNP) fraud is the biggest challenge by far, accounting for 47 percent of all credit card fraud. CNP fraud – which includes payments via the internet, mail and phone – grew 25 percent over the two-year period. Unfortunately, CNP fraud may get worse before it gets better, Scott Zoldi wrote in FICO’s Banking Analytics Blog. “This problem may even intensify as the US moves away from magnetic stripe and toward EMV [chip] card technology,” Zoldi wrote. “In other countries adopting chip-based authentication technology, we've seen counterfeit fraud decline, but as a counterbalance, fraudsters often ramp up efforts around CNP fraud. “ However, there was a glimmer of light in the credit card fraud fiasco. While card fraud attempts rose, the average loss per compromised account dropped 10 percent. Plus, the ratio of fraud to non-fraud spending remained constant. “In other words, the volume of card fraud increased proportionally to the volume of consumer credit card spending,” Zoldi wrote. Even though many retailers have implemented successful fraud prevention programs, Visa provides retailers with the warning signs for CNP fraud, including: