How to Spot Fraudulent Orders on Ecommerce Site

We have included the 6 most important tips on how to reduce credit card fraud on your ecommerce website. These tips are from a standpoint of AFTER A PURCHASE and how to spot a fraudulent order.


Tip #1 – Check IP Address

In all popular shopping carts, you will obtain an ip address for each order. You will want to check this ip address and IF the order ip is different from the billing and/or shipping address you will want to raise a flag and check further.

* Tip – Go to: – search for the ip of order and get location by city & state and compare.

Tip #2 – Different Billing & Shipping Addresses

Although this is a fairly common order, having the billing and shipping addresses being different, you will still want to look into these orders. For example, we do not recall any fraudulent orders from orders that had the same billing and shipping addreses. Note that if a billing and shipping address are in a different state completely than you may want to look at this order more in detail.

Tip #3 – Specific Countries

You will note over time that orders to specific countries have more probability of fraud orders. For example, in our latest project, Venezuela was almost always a fraud order. You may even want to consider banning country ip’s from your site.

Also, you may find specific cities, having more potential for fraud (in our real live example, it was Miami, Florida)

Tip #4 – Search on Google

For flagged orders, you may want to search google or google maps to better understand:

a. if order is to a residential or commercial area
b. if order is to a shipping company

You will also want to search for flagged orders for the address + the term “scam” or “fraud”. In one of our cases where an order was shipped to miami, florida to a shipping company, we found other ecommerce websites having the same fraud orders.

Tip #5 – Call Customers

You may want to have your phone number field in your cart as a mandatory field. If so, call your customer and say thanks for their order. During your call, also pay attention to any flags that may arise. (or if you don’t a hold of customer, please note this.)

Tip #6 – Multiple Orders & Quantity

If you receive multiple separate orders or orders with multiple quantity which is much different from your regular average orders, raise a flag and look into this order carefully.

See our video below: