Fraud Prevention Tools
Fraud Tools
Your Authorize.Net Gateway includes Fraud Prevention tools Address Verification (AVS) and Card Verification Value (CVV).
There are Settings within your Authorize.Net Merchant Interface that allow you to control the AVS and CVV systems:
- AVS– Enter your customer’s billing address through the Virtual Terminal or from your Web site, and the system will compare it to the address the card issuer has on file. Therefore, if someone is trying to use a stolen card to buy and ship items to a false address, this illegal activity will be detected and stopped before it occurs.
- CVV – This is the Visa/MasterCard system involving a 3-digit number printed on the back of the credit card near the signature. It is used during authorization when the credit card is not present during the transaction.
Advanced Fraud Detection Suite™
The Authorize.Net Advanced Fraud Detection Suite™ (AFDS) is a set of customizable, rules-based filters and tools that identify, manage and prevent suspicious and potentially costly fraudulent transactions. You can customize AFDS filters and tools to match your business needs and control how suspicious transactions are handled, including the ability to approve, decline or hold transactions for manual review.
Fraud Hurts, Fight Back
According to the results of the 10th annual CyberSource Online Fraud Report, U.S. merchants lost an estimated $4 billion to fraud in 2008. The Advanced Fraud Detection Suite was specifically built to provide merchants with tools to better combat online fraud. Here’s how the Advanced Fraud Detection Suite can help:
- Reduce Costs – Minimize and prevent authorization and chargeback fees as well as possible inventory loss resulting from fraudulent transactions.
- Protect Profits – Maximize legitimate transactions, rather than refusing business due to a fear of potential fraud.
- Maximize Flexibility – Customize filter settings according to your unique business needs.
- Improve Intelligence – Restrict transaction activity from specific Internet Protocol (IP) addresses using powerful IP tools.
- Easy to Use – A setup wizard guides you through the configuration process.
How it Works
AFDS includes multiple filters and tools that work together to evaluate transactions for indicators of fraud. Their combined logic provides a powerful and highly effective defense against fraudulent transactions.
In addition to the filters listed below, Authorize.Net also offers a new Daily Velocity Filter at no charge. The Daily Velocity Filter allows you to specify a threshold for the number of transactions allowed per day, a useful tactic to identify high-volume fraud attacks.
- Amount Filter – Set lower and upper transaction amount thresholds to restrict high-risk transactions often used to test the validity of credit card numbers.
- Hourly Velocity Filter – Limit the total number of transactions received per hour, preventing high-volume attacks common with fraudulent transactions.
- Shipping-Billing Mismatch Filter – Identify high-risk transactions with different shipping and billing addresses, potentially indicating purchases made using a stolen credit card.
- Transaction IP Velocity Filter – Isolate suspicious activity from a single source by identifying excessive transactions received from the same IP address.
- Suspicious Transaction Filter – Reviews highly suspicious transactions using proprietary criteria identified by Authorize.Net’s dedicated Fraud Management Team.
- Authorized AIM IP Addresses – Allows merchant submitting Advanced Integration Method (AIM) transactions to designate specific server IP addresses that are authorized to submit transactions.
- IP Address Blocking – Block transactions from IP addresses known to be used for fraudulent activity.
- Enhanced AVS Handling Filter – The Address Verification Service (AVS) is a standard feature of the payment gateway that compares the address submitted with an order to the address on file with the customer’s credit card issuer. Merchants can then choose to reject or allow transactions based on the AVS response codes. AFDS includes a new AVS filter that assists the decision process by allowing merchants the additional options of flagging AVS transactions for monitoring purposes or holding them for manual review.
- Enhanced CCV Handling Filter – Like AVS, Card Code Verification (CCV) is a standard feature of the payment gateway. CCV uses a card’s three- or four-digit number to validate customer information on file with the credit card association. Like the AVS Filter, the CCV Filter allows merchants the additional options of flagging CCV transactions for monitoring purposes or holding them for manual review.
- Shipping Address Verification Filter – Verifies that the shipping address received with an order is a valid postal address.
- IP Shipping Address Mismatch Filter – Compare the shipping address provided with an order to the IP address of where the order originated from. This helps to determine whether the order is shipping to the country from which it originated.
- Regional IP Address Filter – Flag orders coming from specific regions or countries. You can choose to customize the filter actions based on an entire geographic area or select country by country how to process transactions flagged by the filter.
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Resources
Resources & Articles For Merchant Account Clients
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