Credit card fraud prevention for merchants: IP addresses
Every time a user logs online, a new IP address is generated. This can be linked back to e-mail addresses and billing addresses. This isn’t always 100% accurate, because the database of IP addresses is constantly being updated and is generally incomplete. The results may also prove misleading if a businessman is traveling on business to another country. Nonetheless, it could potentially give you the reassurance you need to complete a sale.
Sources commonly responsible for spam are often the same as those responsible
for internet fraud. You can verify an IP address at www.whois.ws.
Checking IP addresses can be relatively ineffective. Credit card fraud
rings often generate anonymous proxies. This means that you wouldn’t
be able to detect the legitimacy of the IP either way.
General
Guidelines for fraud prevention
Credit card fraud prevention tips (researching
the customer):
- International Orders
- Quantity and Frequency
- Addresses
- Common Sense
- Free E-mail Accounts
- Legitimate Domains
Precautionary Methods (from Merchant Side):