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Preventing fraud is impossible, but you can minimize it to very low levels with a combination of filters, some of which you mentioned. This includes geo distanc

by pytrin 14y ago

Preventing fraud is impossible, but you can minimize it to very low levels with a combination of filters, some of which you mentioned. This includes geo distance, public Email address, velocity, size of transaction and most important - proxy detection. The use of a public anonymous proxy is a very high indicator of fraud. We use minfraud, a service that takes all of those parameters as input, and uses a huge database of previous fraud to return the probability the transaction is fraud. It has worked exceedingly well to prevent almost all fraud on our marketplace. I wrote in detail about this process about half a year ago - http://www.binpress.com/blog/2012/07/31/fighting-online-fraud-pitfalls-and-solutions/ http://www.binpress.com/blog/2012/07/31/fighting-online-frau...

Osiris 14y ago
I was having huge problems with fraud on my website also. A lot of stolen credit cards being used from Vietnam. Using Braintree as my processor, I send an authorization request for the card. If the auth is successful, I send the data over to MinFraud for a check. If the fraud value is < 25 then I submit the auth for settlement, otherwise it gets voided and the user gets a message that their purchase didn't pass our fraud check. I also log all minChecks and I manually check any request that has a value > 10 or so just to make sure it looks legit. The biggest change I had to make to support this is that I had to add Country, City, and Region (State) boxes to my payment form. So user's have to put in 3 more pieces of information that they didn't have to with a plain (a la Stripe Purchase button) payment form. However, that information has saved me from numerous frauds. Also, it appears that once the fraudsters determined that they couldn't use my site anymore, they've stopped trying. I am VERY happy with their service and it's very inexpensive.

by pytrin 14y ago

Osiris 14y ago

I was having huge problems with fraud on my website also. A lot of stolen credit cards being used from Vietnam. Using Braintree as my processor, I send an authorization request for the card. If the auth is successful, I send the data over to MinFraud for a check. If the fraud value is < 25 then I submit the auth for settlement, otherwise it gets voided and the user gets a message that their purchase didn't pass our fraud check. I also log all minChecks and I manually check any request that has a value > 10 or so just to make sure it looks legit. The biggest change I had to make to support this is that I had to add Country, City, and Region (State) boxes to my payment form. So user's have to put in 3 more pieces of information that they didn't have to with a plain (a la Stripe Purchase button) payment form. However, that information has saved me from numerous frauds. Also, it appears that once the fraudsters determined that they couldn't use my site anymore, they've stopped trying. I am VERY happy with their service and it's very inexpensive.