Fraud Risks

• Card-Not-Present Fraud
  • Increased risk in online transactions without physical card verification.
• Return Fraud
  • Customers returning used, damaged, or stolen merchandise for refunds.
• Friendly Fraud
  • Legitimate customers disputing charges to receive products without payment.
• Identity Theft
  • Unauthorized use of personal and payment information to make purchases.
• Chargeback Fraud
  • Disputes initiated to reverse charges after receiving goods.

Regulatory Challenges

• PCI DSS Compliance
  • Ensuring secure processing and storage of payment card data.
• Consumer Protection Laws
  • Adherence to regulations on returns, refunds, and transparent pricing.
• Data Protection Laws
  • Compliance with GDPR, CCPA, and other privacy regulations to protect customer data.
• Tax Compliance
  • Accurate calculation and remittance of sales taxes, especially for online sales across different jurisdictions.
• Advertising Regulations
  • Truthful representation of products and promotions to avoid misleading customers.

Chargeback Triggers

• Unauthorized Transactions
  • Charges not recognized by the cardholder, often due to fraud.
• Product Not Received
  • Claims that the merchandise was never delivered.
• Product Not as Described
  • Dissatisfaction due to differences between advertised and received products.
• Billing Errors
  • Incorrect amounts or duplicate charges.
• Quality Complaints
  • Issues with product quality leading to disputes.

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Multiple High-Value Purchases

• Rapid succession of expensive orders from the same account or device.

Mismatch in Shipping and Billing Addresses

• Different addresses that may indicate potential fraud.

Unusual Purchasing Patterns

• Orders placed at odd hours or from high-risk locations.

Multiple Declined Transactions

• Several failed payment attempts before a successful charge.

Use of Suspicious Email Addresses

• Emails with random characters or recently created accounts.

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Business Verification

• Confirm valid business registration, licenses, and tax identification numbers.
• Verify physical store locations and assess the legitimacy of online platforms.
• Check for industry affiliations or memberships in retail associations.
• Review the business's operational history and ownership details.

Financial Assessment

• Analyze financial statements for revenue trends and profitability.
• Evaluate average transaction values and monthly processing volumes.
• Assess the impact of seasonal sales and promotional events on cash flow.

Risk Evaluation

• Examine historical chargeback ratios and common dispute reasons.
• Evaluate the effectiveness of fraud prevention tools and security measures.
• Review return and refund policies for clarity and fairness.

Policy Review

• Ensure transparent terms and conditions are easily accessible to customers.
• Verify that privacy policies comply with data protection regulations.
• Assess the clarity of shipping, return, and exchange policies.

Technology Assessment

• Confirm the use of secure payment gateways with encryption and tokenization.
• Verify PCI DSS compliance and regular security audits.
• Evaluate the e-commerce platform's security features against cyber threats.

Reputation Analysis

• Check online reviews on platforms like Trustpilot, Yelp, or Google Reviews.
• Investigate any history of legal issues, customer complaints, or regulatory actions.
• Assess social media presence and customer engagement levels.

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Spike in Online Chargebacks

• A sudden increase in disputes over online transactions may indicate inadequate fraud protection.

High Rate of Returns Without Clear Reasons

• Frequent returns could signal issues with product descriptions or quality.

Multiple Orders with Different Names to the Same Address

• Could indicate reshipping fraud or unauthorized reselling.

Negative Customer Feedback

• Consistent complaints about service or product quality affecting reputation.

Inconsistent Inventory Levels

• Sudden stock shortages may suggest inventory management issues or fraud.

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Business Operations

• What types of women's apparel and accessories do you offer?
• Do you operate physical stores, an online platform, or both?
• How long have you been in the retail industry?

Payment Processing Methods

• Which payment options do you accept from customers?
• Do you offer financing or installment payment plans?
• How do you handle international payments and currency conversions?

Fraud Prevention Measures

• What systems are in place to detect and prevent fraudulent transactions?
• How do you verify the legitimacy of online orders?
• Do you use any third-party security tools or services?

Policies and Procedures

• Can you provide details of your return and refund policies?
• How are these policies communicated to customers?
• What is your procedure for handling customer complaints and disputes?

Regulatory Compliance

• Are you compliant with PCI DSS standards for payment security?
• How do you ensure adherence to data protection and privacy laws?
• Do you have processes to stay updated on regulatory changes?

Customer Service

• What channels are available for customer support?
• What is your average response time for inquiries or issues?
• How do you gather and act on customer feedback?

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Transaction Monitoring

• Implement real-time fraud detection and alert systems.
• Regularly review transaction data for unusual patterns or anomalies.
• Monitor high-risk transactions, such as expedited shipping requests or international orders.

Compliance Checks

• Maintain up-to-date PCI DSS certification and perform regular security assessments.
• Stay informed about changes in consumer protection and data privacy laws.
• Conduct periodic reviews of policies to ensure ongoing compliance.

Security Updates

• Keep all software, platforms, and security systems updated with the latest patches.
• Utilize multi-factor authentication for administrative access.
• Regularly train staff on cybersecurity best practices and protocols.

Customer Feedback Analysis

• Monitor reviews, ratings, and social media mentions for customer sentiment.
• Address negative feedback promptly and effectively to improve satisfaction.
• Use feedback to identify areas for operational improvements.

Chargeback Management

• Analyze chargeback data to identify common causes and implement corrective actions.
• Enhance customer communication to prevent misunderstandings leading to disputes.
• Develop documentation and evidence collection processes to contest illegitimate chargebacks.

Merchant Communication

• Maintain open communication lines for updates on business operations or changes.
• Provide resources and guidance on fraud prevention and regulatory compliance.
• Encourage reporting of any suspicious activities or security concerns.

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