Fraud Risks

• Ticket Fraud
  • Sale of counterfeit tickets or unauthorized reselling.
• Chargeback Fraud
  • Customers disputing charges after attending events.
• Scalping and Resale Violations
  • Unauthorized resale of tickets at inflated prices.
• Data Security Breaches
  • Theft of customer payment and personal information.
• Friendly Fraud
  • Legitimate customers claiming non-receipt of tickets or services.

Regulatory Challenges

• PCI DSS Compliance
  • Ensuring secure handling of payment card data.
• Event Cancellation Policies
  • Compliance with refund regulations for canceled or postponed events.
• Consumer Protection Laws
  • Adherence to laws governing fair ticketing practices.
• International Regulations
  • Managing cross-border transactions and tax obligations.

Chargeback Triggers

• Event Cancellations or Postponements
  • Customers requesting refunds due to schedule changes.
• Non-Delivery of Tickets
  • Failure to deliver tickets or access credentials.
• Unauthorized Transactions
  • Charges not recognized by the cardholder.
• Billing Errors
  • Incorrect charges or duplicate transactions.
• Disputes Over Seating or Services
  • Dissatisfaction with assigned seats or event experience.

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Bulk Ticket Purchases

• Large quantity purchases by a single buyer, potentially for unauthorized resale.

Mismatched Customer Information

• Discrepancies between billing details and ticket recipient information.

High-Value Transactions from New Customers

• Significant purchases without prior transaction history.

International Purchases for Local Events

• Orders from high-risk countries not typical for the event's audience.

Multiple Transactions in Short Succession

• Rapid purchases using the same card or different cards from the same IP address.

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Business Verification

• Confirm valid business licenses and registrations.
• Verify affiliations with official sports leagues or governing bodies.
• Check for compliance with industry regulations and standards.

Financial Assessment

• Review financial statements to evaluate revenue stability and profitability.
• Analyze average transaction amounts and monthly processing volumes.
• Assess the impact of seasonal fluctuations on cash flow.

Risk Evaluation

• Examine historical chargeback ratios and reasons.
• Assess fraud prevention measures and security protocols.
• Review policies for handling cancellations, refunds, and exchanges.

Policy Review

• Ensure clear terms and conditions for ticket sales and event policies.
• Verify that refund and cancellation policies are transparent and accessible.
• Evaluate data protection and privacy policies for compliance.

Technology Assessment

• Confirm the use of secure, up-to-date ticketing and payment systems.
• Ensure encryption and tokenization are implemented for data protection.
• Verify compliance with PCI DSS and other security standards.

Reputation Analysis

• Check online reviews and ratings on platforms like Ticketmaster or Yelp.
• Investigate any history of regulatory violations or legal issues.
• Assess customer satisfaction levels and complaint resolution effectiveness.

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• Sudden Surge in Chargebacks
  • Following an event cancellation, a sports club experiences a high volume of chargebacks due to inadequate refund processing.
• Bulk Purchases by Unknown Entities
  • Large ticket orders from unfamiliar businesses or individuals, potentially indicating unauthorized reselling.
• Mismatched Billing and Shipping Addresses
  • Tickets purchased with differing billing and recipient information, suggesting potential fraud.
• High Number of International Transactions
  • Unusual increase in foreign purchases for local events, possibly from fraudulent sources.
• Customer Complaints About Non-Delivery
  • Multiple reports of customers not receiving electronic tickets, indicating system issues or fraud.

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Business Operations

• What types of events do you host or participate in?
• Are you affiliated with any major sports leagues or associations?
• How do you sell tickets (e.g., online, box office, third-party vendors)?

Payment Processing Methods

• What payment methods do you accept?
• Do you offer recurring billing for memberships or season tickets?
• How do you handle international transactions?

Fraud Prevention Measures

• What security protocols are in place to prevent ticket fraud and unauthorized reselling?
• Do you use any fraud detection tools or services?
• How do you secure customer data and payment information?

Regulatory Compliance

• Are you compliant with PCI DSS and data protection regulations?
• How do you ensure adherence to consumer protection laws related to ticket sales?

Cancellation and Refund Policies

• What is your policy on event cancellations or postponements?
• How do you communicate changes and handle refunds to customers?

Customer Service

• What channels do you provide for customer support?
• What is your average response time for resolving issues or disputes?

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Transaction Monitoring

• Implement real-time alerts for suspicious activities.
• Regularly review transaction reports for anomalies or patterns indicative of fraud.
• Monitor for bulk purchases and unusual transaction volumes.

Chargeback Management

• Analyze chargeback trends and implement corrective measures.
• Maintain documentation to dispute illegitimate chargebacks effectively.
• Provide clear communication to customers regarding policies to reduce disputes.

Compliance Checks

• Ensure continuous adherence to PCI DSS and data protection regulations.
• Stay updated on changes in consumer protection laws and implement necessary adjustments.
• Conduct regular audits of ticketing systems and payment platforms.

Security Updates

• Keep systems and software up to date with security patches.
• Implement advanced security features like encryption and tokenization.
• Use CAPTCHA and other tools to prevent automated fraudulent purchases.

Merchant Communication

• Maintain open dialogue regarding changes in business operations or event schedules.
• Provide resources and support for fraud prevention and compliance.
• Encourage proactive reporting of any suspicious activities or security concerns.

Risk Assessment Adjustments

• Reevaluate risk parameters based on changes in transaction volumes or patterns.
• Update underwriting policies as necessary to reflect current risks.
• Monitor seasonal trends and prepare for fluctuations in activity.

Customer Feedback Analysis

• Monitor reviews and social media mentions for service issues.
• Address negative feedback promptly to improve customer satisfaction.
• Use feedback to identify potential areas of risk or concern.

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