Fraud Prevention Checklist
Preventing fraud requires diligent monitoring of incoming orders. It can seem a bit overwhelming, but once you have a strategy down, it doesn't take much time at all. To help, we've created a simple checklist for you to keep in mind when reviewing transactions. We've also provided a few quick and easy ways you can try to verify whether a buyer is legitimate.
Use this checklist to help look for suspicious activity.
1. Does the shipping address appear suspicious?
- Shipping to high-risk location (vacant property, hotel, country, or location known for fraud)
- You received recent claims or chargebacks from this customer
- Customer is requesting overnight shipping for an expensive order that is in high demand (i.e., electronics)
- Multiple orders are being shipped to the address within a short period of time
2. Does the order seem too good to be true?
- Larger than average order from a new customer
- Overpayment followed by a request to wire the difference
- Received large quantity of orders from the same customer (name, email, phone, or computer) within a short time
- Order consists of multiple requests for the same item (example: 10 iPads)
- Customer offers to let you use their shipping service to receive a discount (customer controls where orders are shipped to)
What to do if you are suspicious and cannot afford to take the risk of a loss
Verify the customer’s contact information (name, phone, email) against the shipping address and look for consistent/matching information.
- Search Engine - Search the Internet for the customer’s name, shipping address, email, and phone number.
- Reverse Phone Lookup - Search the phone number to see where the registered user is located.
- Online maps - Use satellite view to see where your order is being shipped.
- Phone - Call the buyer and ask questions that help verify the order.
- If you are selling a physical item that is eligible for seller protection - follow the Seller Protection Policy.
Help Prevent Fraud Losses
Although PayPal works hard to prevent fraud, every online transaction still carries an element of risk. Find out how you can take a proactive approach to risk management and help avoid fraud losses.Read More