Credit Card Fraud Prevention Using PHP and MYSQL Database

Credit card fraud has become pervasive on thesoftware for e-commerce, orders from Ukraine,
Internet. According to MasterCard International,Indonesia, Yugoslavia, Lithuania, Egypt, Romania,
account takeover fraud has increased by 369% sinceBulgaria, Turkey, Russia and Pakistan have a very
1995. It has become one of the fastest growinghigh incidence of fraud, and often have unverifiable
types of fraud, and one of the more difficult toaddresses.Untraceable email address.
combat. More than $700 million in online sales wereIn many fraudulent orders, the customer's email
lost to fraud in 2001, representing 1.14 percent ofaddress is often at one of the free email services,
total annual online sales of $61.8 billion, according tolike and yahoo.com, which are relatively
GartnerG2. Even if the credit card company has givenuntraceable.Expensive items.
the authorization as to the validity of the card, thereBe wary of expensive orders, especially for
are several ways fraudulent cards can be used onexpensive brand-name items.Multiple items.
your site. The card may have been lost or stolen, butIt can be a bad sign, for example, if someone
the card owner is yet to report its loss. Or theorders three X-Box or three DVD players at once,
number on the card (and not the card itself) mayespecially where the items have a high resale
have been lifted without the knowledge of thevalue.Express shipping.
owner. There is also a scam called identity theft,Most fraudulent orders specify overnight or 1-day
where the card has been issued under falseshipping without hesitation.Shipping address differs
pretenses using someone else's identity and data.Asfrom billing address.
an online merchant, you need to have a system toReceiving point and billing address are different in
check the authenticity of orders placed to safeguardfraud orders. If you are selling valuable items, it can
your business. While the effort may require additionalbe a good policy only to ship to the billing address of
time and money, it can save you the cost and stressthe card's holder.Suspicious billing address.
caused by charge-backs for fraudulent orders. YouThe address looks too simple or invalid. If the billing
lost your physical products; you lose the sale price;address is 123 Main St, New York, the order is
you lose another business opportunity; and you willprobably fraud. You can use or online location tool to
be fined an additional $15-$50 charge-back fee. If yousee if the address can be verified.Leave at door or
have a high percentage of charge-backs, your cardpost office box.
services company can even blacklist you and cancelIf the courier service cannot guarantee delivery of
your merchant account. You will also spend timegoods, the risk of fraud is very high.The
looking up the order and provide the requestedadvancement of geo-targeting in the Internet allows
information to your card services company. All ofus to pinpoint the geographical region for an order.
these hassles are things you can surely doThe information can be used to reduce the fraud by
without.How can you protect your business fromverifying it with the billing address and delivery
credit card frauds? Here are a few steps that can beaddress. This method can identify the scenario where
taken to ensure that the transaction is beingsomeone from country X has stolen the credit card
requested by the real cardholder.Suspect shippingdata from country Y. The IP address lookup service
address.will reveal the real country instead of relying on the
According to ClearCommerce Corporation, a providercountry filled in the order form.
of payment processing and fraud protection