Ways to keep your MaiMai Stores safe from fraudsters?

What is a fraudster?

Fraudsters are individuals or entities that engage in fraudulent activities with the intent to deceive, manipulate, or trick others for financial gain or other benefits. Fraudsters use various schemes and tactics to carry out their fraudulent activities. Preventing fraud is easy with the right tools and preemptive measures in place.

Step 1: Recognizing fraud

Fraud comes in different forms. The most common one experienced by e-commerce sellers is the Card Not Present (CNP) fraud: this is when a fraudsters buy stolen info and use it to place an order. In this case, the real cardholder can file a chargeback, or a dispute.

1. The customer is a new/first-time buyer and makes a higher than average purchase (e.g. your products range from RM5 - RM15 but you see a first-time customer make a purchase of RM328.00).
2. The customer's e-mail and cardholder name are not similar. Also look out for spammy e-mail addresses.
3. The customer's Card Country does not match Billing Country.

4. The customer lists an unexpected shipping location: this includes a vague, unverified or sketchy shipping address.

   *Tips: Google Maps is your friend. Use it to verify the provided shipping address.

5. The customer orders a large quantity of the same product in different variations.
6. The customer makes a rush order.
7. The customer does not have social/digital footprint or there are too many search results for their name.

8. The customer's mobile number cannot be reached, i.e. at they do not reply to any of your SMS or calls.

   
   

Step 2: Verifying fraud

Ultimately, the best way to verify your customer's card payment is by asking them to verify their identity:

Take note: the name on their ID and card should match.

1. For orders fulfilled via pick-up - ask your customer to present the card they used to pay for the order and a valid ID.

2. For orders fulfilled via courier - ask your new customer to submit the following:

   a. Video of the card used to pay for the order clearly showing the cardholder name and the last 4 digits of the card number

   b. Video of a valid ID.

   c. Selfie with the provided ID (text must be clear and readable)

   
   

Step 3: Refunding fraudulent orders

If your customer fails the identity check (or if you have any concerns regarding a payment), we recommend you refund the order immediately to avoid chargebacks, or customer disputes.

Please report any incidents or suspicious activity to us as soon as possible so our team can take appropriate action. The safety and security of our MaiMai community matters to us.

Step 4: Preempting fraud

Another way to prevent fraud is by adding simple preemptive measures to your order fulfillment process:

1. Fulfill orders from new customers after 24-48 hours. This allows you enough time to review an order or see if anything suspicious comes up.
2. Call your new customer to confirm their order. This will verify the the mobile number they provided is valid.

Remember: the responsibility of recognizing and taking action against fraud ultimately lies on the seller.

That's it! Following the guidelines listed in this article can help you keep an informed and watchful eye on fraudsters.