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How to Evaluate Fraudulent Transactions
Jessica Mocha 12/10/2021 3:46:00 PM

CharityEngine has a patent-pending proprietary fraud tool that helps prevent fraudulent transactions from being processed and helps reduce the number of costly chargebacks. Organizations using our advanced fraud tool should review their fraud on a daily basis. During their review, users can delete transactions that they have confirmed as fraud and charge transactions that were captured as fraud but were deemed to be true donations upon research. To monitor this list, navigate to the transactions screen and you will notice a blue bar at the top of the screen.

Click on Review Fraud Transactions to view the list.

A list will be displayed with all transactions CharityEngine has deemed to be a possible fraud transaction

When evaluating if a transaction is fraudulent, there are several key things you must look at: The name, address, email, IP Address, if the donation is the form minimum, and if multiple attempts were made. CharityEngine has made evaluating these identifiers easier by flagging them as suspicious.

If you notice a red or yellow triangle, that signifies a suspicious identifier that needs further exploration.

If you notice a green checkmark, the identifier has been deemed as non-suspicious

Below is an actual fraud attempt that was automatically placed in a pending state. The data that was analyzed to determine fraud has been identified.

1. The unusual name pattern (duplicate first & last)
2. The common email domain (Gmail) is free and relatively easy to create.
3. The address does not follow standard formatting.
4. A donation of $5 or less is a common indicator of fraudulent activity.
5. The IP address is flagged as a highly suspect network.
6. Location - Uruguay is flagged as a potential location source for originating fraudulent activity.
7. The Blacklist Ratio and Decline Ratio for this region are displayed with additional information to inform whether to allow the transaction or terminate.

If you notice something suspicious, an easy way to confirm if the transaction is fraud is to search the identifier online. Using the above fraud transaction, if the address is searched online, it will not return with an actual address. Another way to identify a false address is if the search returns as a hotel or another business that does not make sense with the contact who tried to make the transaction.

Searching the identifier can be done for the name, phone number, and email address as well.

If CharityEngine has identified the IP address as either suspicious or unknown, there are several things to look at to identify if the transaction is a fraud.

By hovering over the IP address, you will be able to see more information such as the location, the trust rating, if and when the IP has been blacklisted, and how malicious the IP address is.

If the location of the IP address is not in the same region or area as the contact address, the chance the transaction is fraud increases, as well as if the malicious ratio is a high percentage.

The last major identifier that a transaction is fraud, is multiple transactions form the same contact with different payment information. Someone who has stolen multiple credit cards is likely to try different methods of payment to try to see if one of their many methods will process.

Note: Multiple payments from the same contact does not always mean fraud payments. If someone did not receive a receipt email, they are likely to try again, however, they are more likely to use the same method of payment rather than a different method, therefore multiple transactions should not be the only identifier of a fraud transaction.

Once you have determined if a transaction is a fraud or real, you will need to either delete or process the payment. To do this, click the checkbox next to the transaction and you will be able to access the drop-down to either delete or process the payment.

A pop up will appear to confirm this is the action and transaction you want to proceed with.

Click OK and your transaction will be deleted/processed and no longer pending.

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