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e-commerce Diamonds

How to protect your eCommerce cart from Fraud orders and save time and money

TransPacific specialises in developing premium diamond and jewellery e-commerce websites. The merchandise on these websites is expensive; regularly attracting fraudsters and rogue buyers.

So how do merchants protect themselves ?

Here are few real life cases.

Case 1

A New York based diamond trader received an order for 2.0 carat diamond costing $6000. The address seemed perfectly deliverable. The call to the phone number confirmed the order. Shipping and billing details were the same. Even the ip address captured in the backend was from California matching with buyer's address.

However, the fraud detection system installed on its Magento based cart put up a red flag. latter it was detected that the order was carried out through a stolen credit card.

Case 2

An order of $5000 necklace with a Germany-based Jewellery e-commerce dealer came all the way from Arizona. The Fraud Detection system" installed in Shopify based e-commerce shop flagged it to be coming through a proxy server. (Proxy servers are often used by fraudsters to mask the real ip address)

Case 3

An Order of $4700 was received by a jewellery dealer on its OpenCart based jewellery e-portal through Paypal. Again the fraud detection system flagged it red as the Paypal account holder had a long chargeback record.

As in above three cases; there is no single parameter to identify a fraud order. Rather its multiple parameter checks carried out by fraud detection system.

There is always a chance of fraud detection mechanism giving false positive for a genuine order but it outweighs the benefit it provides.

Based on the multiple factors a fraud detection system allots them a consolidated score say from a scale of 1 to 100 wherein 1 for safe, 100 for fraud detected.

Primary parameters a fraud detection system evaluates an order is :

  1. Check if ip is through a proxy or Tor node.
  2. check if ip location is matching with the billing address.
  3. The geographic location of the buyer (why would a New York-based buyer buy jewellery from Hamburg Germany based e-commerce vendor?)
  4. The geographical distance between billing and shipping.
  5. Advanced fraud detection systems run the Credit card details against the database of stolen card or a chargeback database.

Human Intervention is a must

You may have a most technologically advanced fraud prevention system but human intervention is a must to do a final assessment.Legitimate orders should not be rejected and false positives to be identified.

Which fraud Prevention systems to be installed on eCommerce carts?

Remember that the frauds are carried out through professional grade tools. The fraudsters are highly skilled and they have the dark-web to consult on how to evade the law.
So it's absolute must to have a solution from reputed fraud prevention agency

Good news is there are dependable fraud prevention  firms offering the API integration with their database. Apart from primary risk evaluation of an order the fraud prevention extensions run the order parameters against the database of fraudsters , and compulsive chargeback operators in real time. Their databases are maintained through active intelligence gather through stakeholders like banks and credit card companies.

Most of these extensions are free however, they need a connection with the parent company Database which is through paid subscription.

Most of these extensions are free however, they need a connection with the parent company Database which is through paid subscription.

Below is the matrix of Good fraud prevention extensions available.

We would suggest you go for a paid extension as the connected database is constantly upgraded and the support is good.

Fraud Prevention Extensions

Platform Extension Name Highlight Cost
Magento Signifyd Chargeback detection and protection Several plans available
  Fraud Detection for Magento 2 advanced customer profile evaluation , Google map of customer shipping and billing $99
  Kount Fraud Prevention Solution Uses connection with Kount SFC database to pick fraud transactions realtime Monthly service fee
Prestashop Anti-Fraud checks creditcard origin and does payment analysis & can also do behaviour before purchase) to assess a risk score 29.99 euro
  PrestaShop Fraud Prevention Module(fraudlabs) Requires FraudLabs Pro license key can start with Micro version which is free or 500/queries a month Extension is free download
  Subuno fraud prevention Has 50 plus customizable checks to assess the order risk  
Woocommerce WooCommerce Anti-Fraud Has a set of pre-configured rules with automated actions like Hold the order, Cancel the order $79.00 - Single Site
$129.00 - 5 Sites
  YITH WOOCOMMERCE ANTI-FRAUD Has a rule set to scan orders and weightage system , proxy detection $56 - Single site
$119 - Up to 6 sites
Opencart FraudLabs

Apart from other features has Social Profile query

Mobile app notification of fraud orders

free for 500 queries
  Fraud Detection for OpenCart by Fraud Genius Automatically take action on orders, such as setting them for review over a certain score. Flat fee of $ 0.3 US per transaction scored
Shopify Signifyd Chargeback detection and protection. Connects with Signifyd Database for chargeback scan Free for 14 days
  Fraud Filter

Create custom filters on orders or checkouts to fight fraudulent orders.

Create filters based on existing order data

Analyze fraudulent orders that were flagged by the app

  No Fraud

Doesnot have a score system Just a flagging where in orders will be marked as fail or to be reviewed

on Transaction Percentage . Free for 14 days

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