Payment Gateways: Avoiding Fraud

Avoiding Potential Fraud

To reduce the opportunity for fraud, we recommend you:

  • Verify your users before they can do business through your platform by the 'approval request' functionality
  • Research a user, check their website (if applicable) and/or social media account
  • Collect appropriate licenses, via image or file upload, for a user’s business
  • Confirm your user’s email address if it is linked to their business domain (send an email to an address at that domain and require a response from it)
  • Monitor activity on your marketplace to get a sense of typical time lines and user tendencies, which can be used to look for suspicious behavior

Identifying Potential fraud 

As a marketplace owner, you are best equipped to determine whether a transaction could be potentially fraudulent. Below, we've included a list of potential 'Red Flags' that could require your attention as a marketplace owner. Not all of these may raise a flag individually, but the combination of multiple scenarios on this list should require additional scrutiny. 

  • Any bookings or orders which would allow fraudsters to take advantage of a quick turn around.
  • Large transactions to listings that have only been published for a short time.
  • Many smaller transactions made with the same card numbers over a short duration.
  • Many transactions made with the same card but different shipping addresses, or many cards with the same shipping address.
  • Many transactions from the same IP address with different cards - this can be tracked from the admin dash by navigating to Manage > Users and clicking 'details' of the user or users in question. This will show the most recent IP address they have used.
  • Use of fake information in the transaction, such as fake phone numbers or gibberish email addresses. ex.
  • User name that doesn't match credit card name.

Reaching out to customers making potentially suspicious charges by phone or e-mail to confirm a transaction isn't fraudulent can go a long way. A phone number that doesn’t belong to the customer, an e-mail that bounces, evasive answers, incorrect answers are all typically a good indication of potentially fraudulent behavior.