Combating Scammers: 4 Telltale Signs of Fraudulent Orders

While customers are frequently the focus of damage done by fraud, it’s a real headache for businesses, too. You can not only be subjected to fines, but can lose valuable relationships with customers and payment providers alike.

Detecting a fraudulent transaction isn’t as easy as matching existing customer details to purchase details, either. Here are four more ways you can tell whether or not someone is attempting to swindle your business and your customer in one fell swoop.

1. Massive purchases.

Are you a wholesale distributor? If not, you really need to double check any huge orders that come through. If that order contains a lot of items that fit a basic category, for example, 50 or more scarves, it’s likely the purchaser wants to resell them. And people who sell things for a living on the straight and narrow, again, frequently have a wholesaler.

Have customer service reach out to these purchasers to clarify and verify. To be considered secure, establish proof that your customers are real.

2. A whole host of transactions, successful and otherwise.

So a customer had their transaction declined – it’s common enough. But did they try to push it through multiple times after that? People who’ve exceeded their limit or have protections on their cards have some idea of what’s going on when a transaction fails. If someone forces the issue, it’s likely they’re making a grab for something that isn’t theirs.

Also, a range of orders from the same card within a short window of time is suspicious. Legit customers can and do place multiple orders close together, but if they’re placing three or more orders per week for nonessential items, it may be a sign that multiple thieves are trying their luck with one person’s stolen information. 

3. Suspect shipping choices.

Here’s a curious little scenario that some businesses never think twice about. A fraudster who’s a little anxious about getting away with the goods selects an expedited shipping option. All told, they’re willing to pay $30 to have $40 worth of stuff overnighted to them.

Sometimes these are authentic purchases, but there’s no harm in having it flagged for follow up. Customers who pay very high shipping rates, committing fraud or not, always have a reason for doing so; it’s never random.

4. Surprising international orders.

If you’ve had any measure of success in business, you have a handle on who buys from you. Sure, it can be exciting to receive a large order – or a series of orders – from Latvia or Singapore, but it’s also a sign that something may be amiss.

Multiple orders in a short timeframe are especially disconcerting. It’s key to figure out why you’re suddenly getting attention from a place where your usual customer base doesn’t live. If the overseas purchaser wants to discuss special shipping instructions and potential discounts with you, that’s an even bigger red flag.

You want to do right by your customers, but fraud makes you seem untrustworthy. This is very frustrating when the only individual truly in the wrong is the thief. To secure good relationships with consumers, lock the thieves out by keeping an eye on suspicious activity – it’s one of the best ways to prevent business losses.