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How to Stop Fraudsters Cold

posted on: Fri Jun 16 2017

Nobody knows bad guys like Kount. Check out the scary characters G-Hop, Mr. Scary Mask, and Filthy Steve (grrr!) in the video below. 

Fortunately, eCommerce operations can rely on Kount Complete™ to identify, stop, and even prosecute fraudsters like G-Hop, Mr. Scary Mask, and Filthy Steve. Here are four steps to building your case:  

  1. CRIME. Prove there was criminal intent to deprive you of merchandise, property, goods and/or services. Use of a stolen credit card and/or a fraudster using techniques to hide his or her true identity during a transaction are valid evidence.

Kount’s advanced screening technologies make it easy for online businesses to tie a stolen credit card to a transaction and demonstrate a fraudster’s attempt to hide his or her identity. 

  1. VICTIM. Demonstrate you are victim of credit card fraud (not the issuing bank or cardholder). A chargeback or a pending chargeback is valid proof, because financial liability shifts to the merchant for chargebacks in card-not-present transactions (Internet, mail order, telephone, or fax).

Kount flags fraudulent orders, helping you avoid chargebacks. Thus, you may have to purposefully “approve” a single bad order so you can incur a chargeback and confirm your standing as a victim of a crime.

  1. EVIDENCE. Provide evidence tying the fraudster to the fraudulent transaction. You should collect the fraudster’s IP address, device location, email, billing and ship-to address(es), along with other data important to document the “digital crime scene.” 

Kount’s advanced screening technologies analyze dozens of data points about each transaction, enabling merchants to easily provide authorities with the technical evidence necessary to directly link the fraudster to the crime.

  1. JURISDICTION. Contact authorities located in the jurisdiction where the stolen goods were shipped (not your local police). Keep in mind that police are more likely to investigate if you show multiple attempted/actual fraudulent orders by the same fraudster.

Kount has helped numerous customers assemble cases and successfully prosecute fraudsters, shutting them down cold.

Is it worth the effort? Absolutely. When you prosecute fraudsters, you send a strong message and reap important benefits:

  • A visit by the police to the fraudster’s location—even if no arrest is made—is a huge deterrent to them attempting future attacks on your business.
  • Word-of-mouth about your aggressive posture will spread quickly within fraudster social networks, helping discourage attacks by other fraudsters.
  • In the event of a conviction, the opportunities for fraud by a prisoner are often reduced to zero (many jurisdictions block or severely limit online activity by inmates).

Discover more about stopping bad guys cold, including a case study about how Kount helped convict the perpetrator of a “buy-online-pick-up-in-store” crime spree. Download the eBook “Prosecuting the Perps: How to Ruin a Bad Guy’s Day.”

Prosecuting the Perps