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Preventative Steps For Transactions That Are “Too Good To Be True”

It’s easier to prevent fraud from happening to a business than attempting to recover lost resources afterwards. If a situation seems “too good to be true” then it probably is. Although the thought of a large transaction is exciting for any business owner, preventative steps should be taken before completing this type of transaction.

Preventative Step

Setting up a web fulfilment process that automatically flags large online orders for follow up is a great best practice to implement. The follow up procedure is typically a phone call requesting a copy of the consumers identification and a copy of the credit card being used. If these two items cannot be provided, they most likely do not exist. In order to fulfill large orders, requesting this additional documentation should be part of the validation process and should be readily provided.


Run A Background Check

Treat a consumer like another business. Although running the credit report of the consumer in question is not feasible,  completing a next level full assessment is. Full assessments differ based on the needs and wants of each business. There are third party companies that can be hired to assist with background checks. Unfortunately, there is no magic number that specifies when a full background check should be completed. Out of the ordinary orders should be treated particularly careful. A significantly large increase in the total dollar amount of an order or total quantity of products ordered are both signs of out of the ordinary requests. For example, if an online shoe selling business averages $100 per order, a request for $100,000 worth of shoes should cause suspicion. In this situation, a third-party background check company should be hired to validate the identity of that individual.


Check Social Media

Social media is an easy tool that can be used to evaluate the identity of an individual placing a large order. Business owners can begin by searching for the existence of social media profiles and the substantial nature of them. Scammers tend to create a “synthetic identity” online, someone who creates a fake presence. Typical red flags merchants can look while evaluating social media are, profiles with a small number of followers and profiles with a large number of followers outside the location of where the order originated from. For example, if the individual placing the order is based in the U.S. and the bulk of their followers are outside the U.S., they may be attempting to create a synthetic identity.

The TouchSuite Risk Management Department provides TouchSuite merchants advice and best practices on dealing with fraudulent transactions. For business owners that have questions regarding suspicious transactions, call 800-793-3250.



This blog is made available by TouchSuite for educational purposes and to provide general information about certain topics but does not provide professional advice. The blog should not be used as a substitute for seeking professional advice in your state. TouchSuite assumes no responsibility for errors or omissions in the contents on the blog.