Information About Online Fraud Protection

Online fraud protection by Instabill

Online Fraud Protection: 5 Dubious Strategies and How to Defend Your Business Against Them

If no other redeeming quality, e-commerce fraudsters are creative, original, persistent. Thus, we as merchants must be diligent with an online fraud protection strategy.

Credit and debit card fraud has moved online — the necessary migration to EMV chip credit cards by U.S. consumers was a catalyst — and, though solutions are available, there remains no such thing as an iron-clad deterrent.

Types of Internet Credit Card Frauds

  1. Skimming: Skimming remains a popular scheme for fraudsters aiming to steal credit card information, then seize the opportunity. Skimmers are devices that are placed on top of legitimate credit or debit card readers — ATMs and fueling station kiosks are the most common targets. Fraudsters duplicate the details on the smart chip or the magnetic strip from the card are duplicated and used (and often sold) online.
  2. Website Cloning and Fake Merchant Sites: Dubious websites project themselves as genuine e-commerce shops and manage to extricate important credit card details from the shopper. This dubious practice is called transaction laundering and has become a game of whack-a-mole: When a fraudulent website is identified as such, it is usually immediate shut down. More often than not, however, there are more fraudulent sites ready to launch the moment a dubious one is found.
  3. Triangulation: Similar to transaction laundering, the merchant appears to be genuine for a period of time and manages to extract credit card details from the shopper, then disappears from the scene without providing the product to the consumer. Likely, the fraudulent merchant already has a new website at the ready when abandoning the previous website.
  4. Credit Card Generators: Sophisticated credit card software can easily be downloaded from rogue websites run by fraudsters. This software generates accurate credit card numbers along with expiry dates. Though it is a popular fraud tactic, there are manual precautions merchants can take to thwart these attempts.
  5. Anonymous Credit Card Use: Card numbers not owned by the users are used by hackers anonymously to make purchases. Many of these credit card numbers can be purchased on rogue websites. This is a popular tactic for criminals who are looking to make a quick “buy” before the merchant and/or card issuer can halt the transaction.

Taking all of the above into account, has positioned comprehensive fraud detection services such as SSL payment processing, 3D Secure and Advanced Fraud Screen. At Instabill we provide online fraud protection resources against all kinds of internet credit card frauds.

Advanced Fraud Screen (AFS) is a highly developed real-time fraud detection service provided by CyberSource — a pioneer fraud management solutions company. Best for online fraud protection, the AFS determines the risk level attached with each order/transaction and provides an accurate fraud risk detection figure. This is highly beneficial for a merchant as it pinpoints possibly risky orders/transaction. It is then up to the merchant as to how to proceed with the transaction.

Main Parts of Online Fraud Protection By ASF

  1. Identifies genuine or dubious transactions in real-time
  2. Quickly analyzes more than 150 risk reasons
  3. Gives back 35 in-depth reason codes
  4. Permits e-commerce businesses to place custom risk limits
  5. Works with the entire global network of credit and debit payment cards
  6. Consolidates with important IT structures

Major Advantages of using AFS for Online Fraud Protection

  1. Identifies single-event fraud
  2. Generates fraud trends swiftly
  3. Converts a large number of orders and transactions automatically
  4. Reduces manual fraud evaluation of online credit card transactions
  5. Diminishes customers’ complaints about credit card frauds
  6. Regulates fraud risk tolerance


With a merchant account from Instabill, our account managers connect your business with the best acquiring bank we know for your industry. All of our acquiring banking partners provide the latest defense schemes in online fraud protection.

Speak with a live merchant account manager directly at 1-800-530-2444.