how to detect fraudulent e commerce transactions

You should attempt to verify that as much of the detail supplied by the
shopper is accurate by as many of the methods described below as you feel
appropriate:

1. Send an email to the email address supplied to confirm that it exists.

2. Check that the area code of the phone number matches with the address by
using one of the free web based lookup programs such as
http://www.brainstorm.co.uk/public/utils/std-search.html (UK).

3. Check the shopper name with Directory Enquiries
http://www.bt.com/directory-enquiries/dq_home.jsp (UK) to verify the
address and telephone number.

4. Ring the phone number to confirm the order details and check that the
number and shopper exist.

5. View mobile telephone numbers with added suspicion.

6. Check the IP address supplied on the order confirmation with one of the
?Whois? databases http://www.ripe.net/perl/whois and verify that the IP
country matches the billing address.

7.You should also try and assess if other general risks are present in the
order such as:

a. Delivery address not the same as the billing address

b. An export delivery address, particularly to the Ukraine, Indonesia,
Yugoslavia, Lithuania, Egypt, Romania, Bulgaria, Turkey, Russia, Pakistan,
Malaysia or Israel

c. Mobile phone as the contact number

d. Fast delivery requested

e. Top of the range item or multiples ordered

f. A repeat order shortly after the first which is in itself unusual

WorldPay also offers an Address Verification Service free of charge to all
of our customers. This includes fraud prevention measures designed to help
reduce your exposure to fraud and increase shopper confidence in online
trading.

Their Payment Pages prompt your shoppers for their card security code and
address. This information is compared with the card issuer's records (where
available) and the results of the comparison passed back to you for
consideration. Where cardholder records are unavailable, their system will
tell you so.

Neither WorldPay nor banking systems will decline any transactions based on
card security or address verification. They will provide you with information to
help you decide if you should withhold or defer delivery. (In the future
their systems will enable you to specify rules by which transactions are
accepted/declined automatically.)

The majority of card-issuers are actively educating their cardholder's
about these measures and preparing their systems so that cardholder records
are available to be verified. In some cases system readiness is imminent
(National Westminster Bank, UK, for example). Both the acquiring bank to
whom we pass your transactions and the card-issuer must also
provide/support a security code verification system in order that the
comparison can take place. Additionally the support provided by each must
be compatible with the other and WorldPay systems. As more banks and
card-issuers put the required systems in place, you will benefit
automatically because of the new support we are providing. Of course no
system is a guarantee against fraud: when fraud does happen we can also
protect you against the financial loss - see the WorldPay Guarantee.

For details about the banks and card issuers who support card security code
and address verification see: Security Code and Address Verification,
Supported Cards.

These new fraud-prevention services are provided free of charge. Note: the
results of address and security verification that we supply to you, do not
represent formal guidance as to whether you should or should not proceed
with a transaction. We compare information entered by the shopper and,
where available, compare it with card card-issuers records. This is
information only: it is not a guarantee of payment. If you process
transactions/orders when there are indications that the cardholder is not
present, you do so at your own risk.

The Security Code verification service enables the card security code
entered by the shopper to be compared against the card issuer's details and
the results passed back to you. The card security code is a number printed
on the card. The number is not embossed on the card and hence not printed
on receipts etc. making it much harder for anyone other than the cardholder
to know what the code is. This will help prevent 'cardholder not present'
fraud. A security code is now printed on the vast majority of credit/debit
cards.

The format and position of the security code varies across card-schemes.
Some cards have a three-digit number printed at the end of the cards'
signature strip. Some (AMEX cards for example) have a four digit number on
the front of the card. Some card issuers refer to this number as the
'Security Code', others as the 'personal security code' and others as 'Card
Verification Value'. In addition it may also go by the name of 'CVV2' for
Visa Cards, 'Card Verification Code' (CVC) for Mastercard/Eurocard and
'Security Code' for AMEX cards.

World pay provide their Security Code verification service in conjunction with banks
and card-issuers. They pass the information entered by the shopper to their
banking partners who pass it to the card-issuer for comparison with their
records. The results of the comparison are then passed back, through their
system, to you. Both the acquiring bank to whom they pass your transactions
and the card-issuer must also provide/support a security code verification
system in order that the comparison can take place. Where either the
acquiring bank or the card issuer do not yet provide support, they pass a
'not supported' message back to you.

The Address Verification Service (AVS) enables the address, including
postcode, entered by the shopper to be compared against the card issuer's
records and the results passed back to you. As part of this service the
country associated with the shoppers address will be compared with the
country the card was issued in. They provide this service in conjunction with
banks and card-issuers. They pass the information entered by the shopper to
their banking partners who pass it to the card-issuer for comparison with
their records. The results of the comparison are then passed back, through
their system, to you. Both the acquiring bank to whom we pass your
transactions and the card issuer must also provide/support an AVS system in
order that the comparison can take place. Where either the acquiring bank
or the card issuer do not yet provide AVS support, they pass a 'not
supported' message back to you.