10300 49th St N #427, Clearwater FL 33762, USA
+1 855-465-4723

Fraud Prevention Guide 2022 – Chargeback Expertz


Fraud prevention is the foremost trouble for almost all online merchants. If we look at the recent stats, it’s easy to acknowledge why.

Keeping the words short: you can’t afford to.

Three-quarters of merchants announced an increment in both fraud attempts and fraud charges by revenue in 2021, and the average cost calculated for fraud management increased five times in just the past two years. In 2019, ecommerce mostly merchants spent an average of 2% of their annual income on fraud prevention. By 2021, their percentage had increased to 10%.

How can you say if you’re facing the most out of your fraud prevention efforts? So what do you practice for credit card fraud prevention? What fraud prevention remedy and device can you get ready to safeguard your business?

In this blog, we will look to answer these questions, and also figure out some common strategies and discuss unknown fraud prevention secrets.

Know These as Warning Signals

Fraudsters can get a large number and variety of tricks and tact’s to fool you out of your own money.  The first foot putting forward towards preventing fraud is acknowledging what to look for. Even as criminals’ tactics evolve, there are a few key indicators that remain telltale signs of fraud.

Warning signals one merchant should watch include:

  • High-Ticket Value

Bluff masters want to get the huge value out of their attempts. To make this happen, they often purchase high-value goods that they can easily switch and convert into liquid cash.

  • Transaction Velocity

When fraudsters get the availability of authentic account information, they most of the time submit many transactions in quick series to elaborate profits before being invented.

  • Expedited Shipping

Fraudsters think to choose the rapid shipping option. They want the goods to knock on their door prior to they being blocked. They don’t think twice before paying extra. In the end, this money doesn’t go from their pocket.

  • Buying in Huge Quantity

Again, fraudsters seek a chance to increase their efforts. They might choose a model of TV or refrigerator, and order the quantity to the maximum limit before maxing out the account.

  • Address Mismatch

The most common thing is that the shipping address written by a fraudster will not relate to the billing address kept on file which is submitted in the bank, or which you have already mentioned in previous transaction records.

  • Repeat IP Addresses

If the exact IP address is linked to multiple transactions and multiple cards, it’s a huge signal that the bluff master may be utilizing information stolen from many consumers.

These are some of the most easily seen signs of fraudulent activity. Remember, though: this is not an exhaustive role.

Fraudsters enter the world back with new schemes and more advanced tactics every day. They’re sharp and can learn to have a good command of new technologies, shopping channels, and industry practices before you observe the threat they committed.

Fraud Prevention: Best Exercise

We’ve closely observed some of the fraud warnings. Given the good volume of orders, you exercise, as it’s not possible for everyone to manually review every transaction.

Shown below there are some fraud prevention best exercises you can do so that will help scale up your fraud prevention efforts.

Arm your AI and Machine Learning

You can deploy machine learning technology so that it will help whether to accept—or decline —a transaction. The technology takes earlier proofs and data and utilizes it to filter your decision-making power. The more data included, the more perfect and sharp, and brilliant the decision-making process ends up, which makes future improvements easier to achieve.

Authenticate Buyers Based on Risk

For some transactions, signals like address and geographic location recommend that the buyer is bearing comparatively less risk. Other buyers, however, may get more in-depth screening or even manually review it. You should divide lower-risk transactions from riskier ones. In this possible method, you only have to introduce movement when it’s needed.

Be PCI-Compliant

PCI standards are made to confirm that you’re taking the important steps to secure your consumer personal data. These security protocols are very twisted and complicated, but PCI compliance is an important base. It preserves your customers and covers you against fraudulent purchases which are made using stolen data, as well as the PR backlash following a data breach.

Train Staff Properly

Give a thought about your staff which is your best line of defense against fraud. Your staff to be trained perfectly and to know the warning signs of fraudulent activity, specifically when managing manual reviews of transactions.

Conduct Regular Audits

Don’t simply give a bubble thought that you’re doing each and everything you need to to get protected yourself and your customers. Conduct audits at intervals of times of all internal operations to make sure that you’re doing the exact thing which is supposed to be done.

Fraud prevention are you using the right tool?

All the tactics we’ve outlined are important. The tools you use, however, will also impact your fraud prevention plan. Deploying the right fraud prevention tools is as vital as adopting the right internal processes.

General Question

Chargeback Responses

Email us anytime!

Email customer service 24/7

Chargeback Responses

Call us anytime!

Reach customer care 24/7 at 855-465-4723

Reach customer care 24/7 at 855-465-4723

Are some chargebacks just a “cost of doing business?”

Below is a list of common fraud screening tools you can use to identify risky transactions? Many of these tools have been around for years. The newer tools, however, tend to be more effective at preventing fraud because criminals have not had as much time to learn how to bypass them.

3-D Secure

Executing 3-D Secure 2.0 (or 3DS2) supplies an included level of security by making sure the buyer is the authorized cardholder.

Address Verification Service

Address Verification Service (AVS) helps reduce risk by automatically checking the billing address listed in the transaction against the address registered with the issuing bank.

Fraud Blacklist

A blacklist helps prohibit known or probable fraudsters. Whether these individuals are involved in a criminal fraud or friendly fraud, initiating a blacklist can make sure they never seed trouble more than once.

Device Fingerprinting

Device fingerprinting is an updated forensic technique used to recognize a device. This method can collect antique knowledge found on device configurations, hardware, and installed software.

Card Security Code

The card security code is a very available authentication tool that helps to make sure that the shopper has ownership of a card. These codes cannot legitimately be stored by either the merchant or the processor.

Visa Account Updater

Visa Account Updater is a credit card information clearinghouse that informs you about updates to cardholders’ accounts. This assists you to make sure that you have the recent information available.

Velocity Limits

Velocity limits, or velocity locks, inspect for capable fraud based on the price at which a buyer gives multiple transactions. This allows you to recognize the fishy transactions in real-time.

Fraud Prevention: Automated Decisioning & Fraud Scoring.

Fraud prevention needs a piled approach. You need various fraud prevention tools deployed in a balanced and harmonized manner. Each tool has its pros and cons.

Utilizing tools that are favorable to one another is what it means to have a fraud prevention strategy in place. Looking at the explained term, this is the only method to get perfect data, recognize related fraud prevention KPIs (key performance indicators), and make an informed resolution about fraud.

That’s for sure, you don’t have to depend on manual assessments to do this. Fraud scoring technology lets you deploy machine learning to inspect each transaction based on a vast variety of indicators. It also gives simple “up-or-down” decisions as to whether a purchase should be accepted, rejected, or subjected to further scrutinizing.

Many fraud prevention service providers adjoin tools into a single risk management roof, letting you decrease your burden entirely. Here are some of the best-known service providers.

Some Related Blogs

A brief guide on what is the credit card dispute resolution process?

How To Handle Chargeback Disputes?

What to do when customers forces chargebacks?


Riskified generally practices machine learning to quickly differentiate between correct and incorrect actors, permitting merchants to sanction more orders (with a 100% chargeback guarantee) while providing a harmonious customer experience.


Signified serves its customers with fraud protection for ecommerce backed by a 100% financial guarantee. They are the technology holder which identifies both right and wrong about consumer behaviors—reducing losses, lowering rejections, and increasing revenue.

Clear Sale

Clear Sale is a whole and sole ecommerce fraud protection solution. They collectively combine advanced statistical techniques with the world’s renowned team of specialized fraud analysts for a balanced, real-world approach.

No Fraud

No Fraud serves ecommerce fraud prevention services through virtual identity verification. They dispatch individual, real-time decisions for every transaction (Pass/Fail) using many of the millions of data points and fraud detection technologies.


Bolt solves the toughest technological challenges which are generally figuring out at checkout, fraud detection, and digital wallets. You can assign your energy to the preferred ones—improving your product, brand, and customer base.

Fraud Prevention: The Bottom Line

Fraud prevention is about using the perfect and proper tools, in a very organized manner, so they combine and work together to complement each another.

That is but obvious, that after using the perfect tools and tricks in place, there’s nothing 100% surety that your business will be “fraud-proof” or “chargeback-proof”. Criminals get more intelligent and sharp as time passes, and they are the ones who are up-to-date on the new threats that they can make to the business owners.

Chargebacks Expertz offers the most absolute chargeback management services and products. Our experts are continuously exposing new fraud threats and creating innovative strategies and technologies to bounce back their moves. This not only applies to fraud prevention but even to tough-to-fight challenges like friendly fraud.

Whatever you need to fight back and need an SOS, we can help anytime anywhere. Talk to our experts and get to know more about your business profits which you are still unaware of it.

Related Posts

Leave a reply

You must be logged in to post a comment.

Chargeback Prevention