Fraud :: essays research papers

                         FRAUDMANY OF MY FRIENDS and acquaintances are still reluctant to apply their credit-card numbers on the net profit, even to buy from well-known merchants over salutary connections, and even when their credit-card issuers offer full protection against double-tongued charges. This side of the Internet fraud problem has received much more attention than the some separate side that Internet merchants have no really effective look to protect themselves against credit-card fraud.Standard credit-card affect software will give the merchant an approval if the card account is valid, and has enough open credit to remain the sale. For cards issued by U.S. banks, in that location is an additional security feature called insure Verification System, or AVS. This compares the billing address associated with the card with the one entered by the merchant. The system w orks fairly well for goods shipped to billing addresses in the U.S. alone in that location are two major gaps in protection. First, and most seriously, there is no AVS for cards issued by foreign banks. In opposite words, there is no way for a merchant to use the standard credit-card processing system to guarantee that a foreign credit-card transaction is valid. This forces them to use heuristic, and some dates arbitrary, measures for fraud screening. My community, for example, wont fulfill orders from Romania, having been burned a few times in like manner many. Customers with hotmail or other free, Web-based e-mail accounts have a point or two against them. Express shipping, ordering many items, and ordering the latest games (instead of filename extension or educational software) all reduce the likelihood that well accept the order. The baptistery is similar for U.S. cards when the goods are shipped to an address other than the cards billing address.If we take chances wrong and ship an order that turns out to be fraudulent - we commonly find out months later - we get a "chargeback," meaning that the tot up we received for the order is taken back from us. If we guess wrong the other way, refusing to ship a legitimate order, we risk alienating potential customers. My company manages to keep its chargbacks very low, but its frustrating to be in this event where there is no way to avoid doing the wrong thing from time to time. There are commercial fraud-screening services that filter credit-card transactions automatically, applying these and other checks, but they are not perfect. We have had limited success referring fraudulent transactions to collection agencies.