12 Potential Credit Card Fraud Indicators

Keep your eyes open for the following fraud indicators. When more than two or three is present in a transaction, proceed with caution:

First-Time Shopper:

Criminals are always looking for new victims. Fraudsters like to set up new accounts.

Larger Than Normal Orders:

Because stolen cards or account numbers have a limited life span, crooks need to maximize the size of their purchase.

Orders that Include Several of the Same Item:

Having multiples of the same item increases a criminal's profits and makes it easier to fence goods.

Orders Made Up of “Big-Ticket” Items:

These items have maximum resale value and therefore maximum profit potential.

“Rush” or “Overnight” Shipping:

Crooks want these fraudulently obtained items as soon as possible for the quickest possible resale, and are not concerned about extra delivery charges.

Shipping to an International Address:

A significant number of fraudulent transactions are shipped to fraudulent cardholders outside of the U.S. Visa AVS can't validate non-U.S., except in Canada and the United Kingdom.

Transactions With Similar Account Numbers:

Some fraudsters use numbers generated using software available on the Internet (e.g., CreditMaster).

Shipping to a Single Address, But Transactions Placed on Multiple Cards:

Sometimes it's just splitting the order, but when you see this, it might be someone using a batch of stolen cards.

Multiple Transactions on One Card Over a Very Short Period of Time:

Could be an attempt to "run up" a card until the account is out of money to spend.

Same Card Used to Ship to Many Addresses: Could represent organized activity, rather than one individual at work.

In online transactions, multiple cards used from a single IP (Internet Protocol) address:

More than one or two cards from a single IP address is a strong indicator of fraud.

Orders from Disposable Email Addresses:

These services allow users to create instant, disposable email addresses.

Written by Mike Seidle on 19th Jan, 2015