Order Fraud Analysis Tool

How to use and read the different features of the fraud analysis tool on the orders page.

Dan McCarty avatar
Written by Dan McCarty
Updated over a week ago

In the latest version of our admin, we have introduced a new tool on the full order details page that will help you understand and manage one of the biggest risks in e-commerce: fraud. The tool analyzes all relevant data points on the order, and displays a "fraud concern rating" in the form of a color-coded status bar. The size and color of the bar change fraud concern rating is the percent of how many data points suggest potential fraud out of all data points analyzed. The data points that we analyze for direct website orders are:

  • Credit Card AVS and CVV codes

  • Billing / Shipping address match

  • Billing / Shipping / IP address previously reported as involved with fraudulent orders

  • IP address geolocation compared to billing address

  • PayPal Seller Protection

Orders from other channels are analyzed as well, although some data points are not available (such as the IP address of the customer). 

Credit Card AVS and CVV codes (for direct transactions only)

When a credit transaction is run through your direct website checkout, two important pieces of information are analyzed: the Card Verification Value (CVV) included with the transaction, and the Address Verification System (AVS) response. When a credit card transaction is submitted, the information is passed along to the bank where your merchant bank account is set up. If your bank approves the transaction, they respond with both of these codes. Each bank and payment gateway has different settings to determine which transactions are approved or denied, but the fraud analysis tool will flag any response that is not "Match," so that you can review that information. 

Billing / Shipping Address Mismatch

Any order with mis-matched shipping and billing addresses will be flagged for review. We know some orders with mis-matched shipping and billing addresses may be legitimate, we still want you to be aware of that potentially fraudulent characteristic.

Billing / Shipping / IP Address reported as fraudulent

CrystalCommerce lets members flag an order as being fraudulent, and submit a brief report about the details of the fraudulent activity. We maintain that report centrally, and match all new orders against existing reported fraudulent addresses. If the address in question is used again to place an order on any website our platform, we flag the order as potentially fraudulent and the users of that admin will be able to read any existing reports. Billing, shipping, and IP addresses are checked individually, and each has its own unique report in the fraud analysis tool.

IP Geolocation vs Billing Address

Another safeguard against fraud is to check if the order was placed in a locations that is close to the billing address. If the billing address is not geographically close to the IP address used to place the order, the fraud analysis tool will alert the user to that potentially fraudulent characteristic.

PayPal Seller Protection

The status of PayPal seller protection for your order is displayed if PayPal is one of the payment methods used on the order. PayPal seller protection isn't directly related to detecting fraud, but it determines your financial liability in case an order turns out to be fraudulent. If your order is eligible for seller protection, in most cases you will not have any financial liability if the order was fraudulent.

The fraud analysis tool shows you the best analysis of every applicable data point on the current order. Armed with that information, you can make the most informed decision about order fulfillment.

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