eCommerce Fraud 101

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Fraud alert on a laptop_CardinalCommerceAs an eCommerce business owner, the best way to protect yourself from internet fraud is to secure yourself and prepare for when it happens, because in all honesty, it probably will happen. If you’re not sure what fraud looks like. Here are a few examples of what to watch out for.

  1. When the shipping address doesn’t match the billing address: In reality, this happens. Sometimes, a person is buying a gift and shipping directly to the recipient, so the addresses won’t match. Other times, a shopper is traveling and using a different shipping address to receive the package. Having said that, it’s always worth double checking because this is a common fraud ‘move.’
  2. The shipping address is different from the IP address of the customer who placed the order: Generally, the eCommerce platform you’re using will log the IP address from where the order was placed. If this doesn’t match the billing address, which doesn’t match the shipping address, then you can be fairly confident that something is up.
  3. When a massive order (think pricy!) is placed from overseas: Make sure that when you receive a big purchase order from overseas, it’s legit. This is an easy way for scammers to get past a small online commerce site because they know it will be hard for the business to communicate with the buyer. Try. Call the number via Skype or Google Hangouts and see if it works. If it doesn’t, it’s worth investigating.


These are just a few of the big red flags to look out for when scanning for fraudulent purchases through your business. There are a number of tools and strategies you can implement that will further protect you and your company. These include fraud detection solutions, device and IP address analysis, and AV and CVV2 verification methods. We encourage you to research these options and the others available to help keep your online commerce business safe and secure.

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