12 signs of potential fraud every business should be aware of
1. An order is larger than normal.
If you receive an order from a new customer that’s larger than your average order size, especially if it’s for a product in high demand or high value, like electronics or jewellery, be cautious.2. You receive an unusually large number of orders at an unusual time of day.
For example, 10 orders from Australian customers at around 3am on the same day.3. You receive an unusually large number of international orders within a short period of time.
If you receive more than 50 orders from customers overseas within a few days when you normally only receive 2 a month, that could be a sign of something going on.4. You receive bulk orders when you’re not a wholesaler.
If a customer orders 50 pairs of the same shoe in various sizes, for example, ask yourself if that makes sense.5. Several orders from different customers have the same shipping address.
Fraudsters often steal credit cards from multiple people and ship orders to a single address.6. The billing and shipping addresses don’t match.
This one doesn’t automatically indicate fraud – people have things shipped to work or friends to make things easier all the time. But if you’re feeling uneasy about it, look over at all the order details to see if anything else appears unusual.7. A customer asks to change the shipping address after the order has been paid for.
Make sure their address change makes sense. Some fraudsters enter a valid address at checkout so your fraud systems don’t catch them, then contact you to change the address afterwards. Also, keep in mind that if you do agree to ship to another address, the sale won’t qualify for Seller Protection.8. A customer pays with multiple credit cards.
Be cautious if a customer provides several different credit card numbers. A fraudster may ask you to create multiple transactions using various cards. If you don’t already collect the name on the credit card, start requesting this information to help detect fraud.9. A customer asks for rush or overnight shipping.
Everyone wants their purchases quickly but, when express shipping costs become high and they’re still asking, take a moment to check over the rest of the transaction details to make sure you’re still comfortable with the order.10. The email address looks suspicious.
If the email address seems unusual, like knh$$yro123456@gmail.com, or your emails to confirm the order aren’t delivered, you might have cause for concern. Legitimate customers are more likely to use email addresses that contain their name.11. A customer overpays you.
Overpayment scams are common. If someone overpays you, don’t send the extra money back through a wire transfer, online banking transfer or pre-loaded money card. Instead, return the money with a refund on the initial PayPal transaction.12. The shipping address looks suspicious.
Before shipping an expensive order, make sure you know where the order is being shipped. Criminals may ship orders to freight forwarders, shipping companies, PO boxes or vacant properties so they can remain anonymous.If you do receive an order you believe is fraudulent, you can give the customer a call to confirm the details or simply cancel the order and refund the payment through PayPal. If you’re not sure, get in touch and our team will investigate further for you.