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3 Ways to Prevent Fraud in Your Business Transactions


Fraud is costly for businesses of all sizes. You lose the inventory you’ve shipped or the person that’s carried out the door. You have to refund the money to accounts the thief used for the purchase, and that typically comes with high transaction fees. Here are three ways you can prevent fraud in your business transactions.

Review Suspicious Orders

One of the best ways to prevent fraud is to review suspicious orders, though this may require human effort instead of being left to an algorithm. Fortunately, there are a number of reasonable standards one can use for what constitutes a suspicious order. For example, someone’s order is far larger than normal.

If multiple international orders are placed on an account, this is a sign of fraud, unless the person has updated their information to say they’ve moved overseas. If the shipments are billed to the same person but sent to different people around the country, this is a sign of potential fraud, unless it is part of the Christmas rush, and you should still double check then. If someone who normally buys earbuds and video games start shipping big screen TVs all over the world, it is suspicious and you should freeze the account.

If all of the contact information for the account changes, like phone number and email address in addition to the mailing address, the person’s account is being defrauded by a criminal smart enough to prevent the customer from being warned.

BACS approved software providers such as AccessPay confirm bank details before uploading the payment information and allows you to receive warnings before customers leave with product. This is called data pre-validation. And because it connects to the cloud and runs on a number of devices, you’ll never have to choose between the risk of fraud and processing payments which will inevitably benefit your business.

Check the Card Verification Code / Value

CVC stands for card verification code. CVV is short for card verification value. Both of these terms refer to the three-digit code on the back of the card. Most online thieves simply have a credit card and expiration date, and they rarely have the three-digit code from the back of the card. By requiring this code when someone is placing an online order, you help weed out unauthorized users. It won’t prevent someone from entering fraudulent orders with a stolen credit card, which is why reviewing orders that are suspicious are considered a more important step in preventing fraud. You could add an extra layer of security by adding verification codes that are verified by the bank; these verification codes are similar to passwords and aren’t something the thief would know.

Verify Address Information

A change of shipping address, especially if the billing address does not change, is a major indicator of fraud. Check the new shipping address against maps showing you international shippers and freight forwarders. Changing a billing and shipping address for the same account should be verified with the customer at their normal email address. If the new shipping address is even somewhat far from the customer’s billing address, give the customer a call. They’ll appreciate that you’re trying to prevent fraud. If you run these address checks through an address verification system or AVV, you may actually qualify for lower processing costs. Emailing or calling the customer to verify the address is a recommended step, though the fraudsters may respond. If the address verification email bounces or the phone number doesn’t work, then you should cancel the order.


If you want to reduce the chances of fraud, review all suspicious orders, including major changes in shipping destinations, purchasing volume, and contact information. Check the card verification code as part of the checkout process. Work with a service to verify the customer’s address, though this may be done through your payment processor. Verify payment information through services that make sure it is the customer buying the items instead of assuming that the order should go through as long as payment isn’t immediately denied.