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  1. #1
    Affiliate Manager
    Join Date
    January 6th, 2009
    Orlando, FL
    Need help with credit card fraud

    We are having a problem with fraudulent affiliate credit card sales. We have put as many safeguards/validations in place with our shopping cart however somehow it is still happening. We auto approve affiliates currently but we may change to a manual approval process.

    Does anyone have any suggestions on what might work to lower the number of times it occurs? We have done a lot of research and have not found a good answer. We know that this is a tough nut to crack...but we need some help.

  2. #2
    Full Member c4's Avatar
    Join Date
    January 17th, 2005
    If you auto or manually approve affiliates it doesn't matter because affiliates are not the ones making fraudulent sales (the visitors/customers are).

    I'm not sure what kind of product you sell, but I've had good experience with in the past (I'm not affiliated with them, just my experience...). They have a fraud screening solution. And on one of my sites selling memberships I implemented their telephone verification service; I require each customer to add and verify a valid phone number to their account - it probably scares some customers away (I don't allow VoIP or prepaid mobile numbers) but it's been keeping my fraud rate down to virtually 0 the last two years.

    This might not be appropriate for your business, just my 2 cents.
    [URL=]Help desk software[/URL]

  3. #3
    Affiliate Manager
    Join Date
    January 6th, 2009
    Orlando, FL
    Thanks for the information on Maxmind. They may be useful for us in the future. We monitor website and server uptime. We try to keep our signup process simple for our clients since we are targeting web based e-commerce.

    We have high payouts for our affiliates and unfortunately it did attract a few individuals that were unscrupulous. We did have actual affiliate fraud in which the network (SaS) investigated, verified and removed the culprit.

  4. #4
    Join Date
    April 9th, 2010
    Salt Lake City, Utah
    Fraud has been a huge issue lately. One of the things we've noticed is that some of the old advertisers have signed up as Affiliates on various networks and have been using their old MC data from the end of last year and the beginning of this year. There were many companies selling their credit card data as well. That is a huge NO No. It is a Federal Offense and is a Felony. We had some of our advertisers who lost their merchanting get approached by companies to buy their data. Our advice is still the same today as it was then. DON'T DO IT! The Good news is that eventually most of these jokers will get locked up but for now we manually scrub our data for anything suspicious. The transactions we saw were all MC"s & they all had similar email addresses. We ended up calling the customers on these transactions to verify the transactions. Needless to say they were fraud.
    Good luck!
    Ben Neil

  5. #5
    Join Date
    February 5th, 2009
    I have been selling online for many different clients for almost 8 years now. Most clients sell books or music; one sells wine. We have no trouble spotting fraud and I guess I am surprised that so many people do. If you use AVS and CVV, and occasionally a "reasonableness" test, you can usually spot fraud at least in these product areas. Perhaps it gets tougher with a wider variety of products, or products in targeted industries (such as electronics). I have yet to encounter fraud where the address and CVV both match, and the order is going to a country which is not known for fraudulent transactions.

    When an obscure folk musician received an order for two or three of every CD he had, from a "customer" in Ghana, the red flag went up!
    Valerie Magee

  6. #6
    Affiliate Manager Chris D's Avatar
    Join Date
    March 20th, 2008
    I recently was hit with a bunch of fraud orders by affiliates. I am sure it was the same guy but he head about 6 different names. Once I figured it out I banned the affiliate and then refunded all of their orders.

  7. #7
    Join Date
    July 8th, 2010
    Affiliate fraud is always a possibility and potential problem, especially selling digital/ intangible goods. Most common solutions focus on ensuring that consumers are who and where they say there are, and ensuring that they aren't affiliates "posing" as referred consumers. Keeping an eye on conversion spikes with an affiliate could be an indicator also.

    Using the providers below within your checkout process and/ or your affiliate systems will decrease your risks substantially. Most are very easy to integrate.

    Geolocation, Reputation, etc:
    - Maxmind
    - Quova

    Device ID, Risk scoring, Proxy busting, ect:
    - Kount (sister company to ClickBank)
    - ThreatMetrix
    - iovation
    - Retaildecisions
    - the3rdman

    Consumer data verification:
    - GBgroup
    - 192 dot com
    - 555-1212
    - Integrity.aristotle
    - RSA

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