How online merchants can combat e-commerce fraud


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A research of a stolen bank card by Riskified and IntSights reveals how scammers use card data and the way retailers can guard in opposition to any such fraud.

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On November 23, 2016, somebody utilizing the identify Joseph Tanner tried to purchase a sequence of digital present playing cards to be delivered to somebody with the identify Kasper Gleason (not their actual names). In actuality, Kasper Gleason was a fraudster utilizing Tanner’s identify, bank card quantity, and billing handle to illegally purchase the present playing cards. These stolen credentials had been making the rounds of the Darkish Net since 2014, and had been truly supplied to fraudsters as free samples to show their validity. Since then, fraudsters have used this identical data to attempt to buy objects from dozens of various retailers. In 2019 alone, these credentials had been found 44 instances throughout the Darkish Net.

A research launched Wednesday by cybersecurity suppliers IntSights and Riskified appears at how these fraudulent makes an attempt with one bank card may very well be thwarted. The knowledge and recommendation on this research may be helpful to retailers looking for to fight e-commerce fraud.


Screenshot of Joseph Tanner’s particulars together with his social safety card quantity shared as a free pattern on a well-liked market for stolen bank card credentials.


The best way the present card orders had been positioned utilizing this stolen bank card raised a number of crimson flags with Riskified’s fraud prevention software program. The scammer positioned 4 orders—the primary at 1:49 a.m., the second only one minute later, the third six minutes after that, and the ultimate one a minute later. All the small print remained the identical throughout the 4 orders. This fast succession of orders with the identical particulars was one signal of attainable fraud to Riskified, which deduced that Gleason checked out a number of instances hoping that one of many orders would undergo.

The time the orders had been positioned was one other signal of attainable fraud. Fraudsters typically schedule orders at off hours in an try and sneak previous retailers with guide reviewers, in accordance with the research.

SEE: Particular report: A profitable technique for cybersecurity (free PDF) (TechRepublic)

The orders had been the primary ones positioned with the web present card vendor with this account, which had been created only a day earlier. That was one other warning signal. Orders by new accounts and by new clients typically be a focus for fraud managers, IntSights stated.

The supply electronic mail handle for the account was [email protected] This was yet one more signal. Random electronic mail addresses comparable to this one are thought-about riskier than are addresses comparable to [email protected] or [email protected] It is because fraudsters want plenty of electronic mail addresses, and create them rapidly and haphazardly by looking for ones that are not already in use.

Riskified additionally cross-checked the cardboard quantity, bodily handle, and electronic mail handle, and found that no reliable orders had been positioned by the unique card holder with that card quantity, nor had this particular person ever shopped on IP addresses outdoors of New York State. Utilizing the corporate’s resolution and armed with all of this data, the web card service provider appropriately declined the entire orders.

Fraudsters additionally use extra refined and automatic instruments to commit fraud in opposition to on-line retailers, in accordance with the research. One such software is an account checker, which injects stolen usernames and passwords into the suitable fields on an internet order kind to see which credentials work. Such instruments may even counteract a number of the protection mechanisms utilized by on-line retailers.


Screenshot of an account checker.


Fraudsters additionally make use of auto-buying bots to attempt to purchase objects utilizing stolen bank card credentials. These are much like the bots used to win auctions on websites like eBay. The criminals merely reconfigure them for their very own unlawful functions.

Past studying from the examples within the research, what can on-line retailers do to higher mitigate fraud on their very own websites? IntSights affords the next ideas organized by offense and protection:

A superb offense requires a wise steadiness between fraud discount and buyer retention.

  1. Take away static or rules-based filters and blacklists. As an alternative, think about neural networks and machine studying to higher detect fraud.
  2. Do not rely solely on matches when evaluating orders.
  3. Watch out of including friction and turning reliable customers away.
  4. Search for a fraud resolution that scales together with your progress.
  5. Regulate your fraud method to suit how your clients store.

A superb protection requires you to maintain your pulse on an ever-changing panorama.

  1. Monitor social media for pretend accounts, unauthorized product adverts, and phishing scams.
  2. Repeatedly replace clients on licensed contact channels for help.
  3. Monitor the Darkish Net for brand new hacker instruments.
  4. Watch your retail web site rigorously, particularly pages that require credit score/private particulars.
  5. Management and restrict entry to firm databases utilizing multi-factor authentication.

Additionally see


Picture: iStockphoto/BrianAJackson

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