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7 Essential Practices to Avoid Online Fraud


Every time a fraudulent order goes though, you might as well be throwing money down the drain. Sadly, dealing with fraudulent orders is one of those unfortunate downsides of eCommerce—especially if you’re not sure how to counter them and protect your assets.

But fraudsters aren’t unstoppable, and you shouldn’t have to give in to their tricks. Fraudulent orders tend to raise some red flags, but the more safety systems you have in place, the better. Learn how you can avoid fraudulent orders from the start by setting up a smart ordering system to weed out the fakes.


  1. Use an Address Verification System (AVS).

With an Address Verification System, you can check the shipping and billing address of your customer. Do they match? Are they from different countries? Is it a potentially high-risk country, especially in Asia or Africa?

The world as we know it is getting smaller. It is increasingly common for customers to order internationally, or to have different shipping and billing addresses, so these factors by themselves are not necessarily a cause for worry. But use your intuition—if several of the risk factors listed above appear in the order, then perhaps you should investigate further.


  1. Require Credit Card Security Codes—CVV2 or CVC2

This is another simple way to validate your customer’s legitimacy. Though customers sometimes make mistakes, the correct CVV code should indicate that the card is in the possession of its rightful owner.


  1. Use a solution provider with fraud screening service.

A fraud screening service will scan orders and flag potentially fraudulent orders, giving you a numerical assessment of the risk level based on multiple filters.

At RevolutionParts, we employ the shipping-billing mismatch filter, amount filter (for massive orders, which may be fraudulent), regional IP address filter, AVS filter, as well as enhanced CVV handling filter. We get system alerts for suspicious orders, and you can see every order placed assigned a risk level of low, medium or high based on the analysis.

Again, none of these automatically mean the order is fraud, but a combination of these risk factors will be analyzed to give you a reading of low, medium, or high risk. This information should help you decide whether to process orders or not.

Additionally, our platform allows the admin to see a Google Maps widget next to the customer’s address. You can even click to see the street view and check if it is a legitimate address or, say, an abandoned warehouse.


  1. Require a strong password.

Require your customers to have a strong password when creating an account is a simple way to keep hackers from easy prey. While it is the merchant’s responsibility to safeguard their customers’ data, the customers can make an effort to keep their information safe, too.

Requiring a combination of upper and lower case letters, numbers, and symbols is a good starting point.


  1. Check for anonymous or funky email addresses.

Typically, legitimate customers would not use an anonymous email address to place an order. Also be wary of strange or incoherent email addresses, such as those with many numbers or senseless letter combinations. Of course there are always exceptions, but the fraud screening tool will give you more information to help you decide.


  1. Use tracking numbers for expensive orders.

While our system will screen out suspicious orders with massive amounts of the same parts, it will not screen out items that are simply expensive. Customers ordering expensive parts doesn’t have to mean fraud. However, you still need to be careful with these orders because if something goes wrong, you’ll take a heavier hit.

That’s why it is important include a tracking number with expensive orders, or better yet, require a signature. This will reduce chargebacks from customers claiming to have never received the item.


  1. Make sure your provider checks and updates their platform regularly.

Having a reliable eCommerce solution provider is the cornerstone of your store’s security. Does your provider regularly check their platform for viruses? Are they up to date with their firewall and anti-viruses? Do they have a disaster-recovery system for back-up?


At RevolutionParts, you don’t have to worry; we provide you with the most advanced fraud screening services. We screen for large orders, excessively expensive orders with overnight shipping, suspicious IP and physical addresses, as well as questionably high-volume orders.  

When it comes down to it, you can always contact the customer via email or phone to verify their legitimacy. Sometimes an order looks fraudulent, but a real and honest customer is just making a purchase under unusual circumstances. You don’t want to lose a sale—and a customer—by assuming every order with a red flag is fraud.