User's Guide

Fraud Filter Reference
High-risk Customer Filters
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86 Fraud Protection Services User’s Guide
All three elements should match one realistic customer profile. For example, a customer with a
billing address in New York would typically shop from a computer in New York, and request
delivery to a New York address. While there may be some minor inconsistencies in the overall
profile, it should generally fit together. Remember, however, that gift purchases sent to another
part of the country will not fit this profile.
NOTE: You should be especially wary when a customer has an international IP address but
uses U.S. billing and shipping information.
IP Address Velocity Filter
What does the filter do?
The IP Address Velocity filter triggers when five or more transactions within three days (72
hours) originate from any individual IP address.
IMPORTANT:The specified action is performed on only the transaction that triggered the
filter and not on the previous four transactions. You must manually review and
act upon those transactions. Generate a Transaction Details report and click
the IP Address Velocity link to view the transactions.
IP addresses do not always identify a unique computer or user. For example,
an Internet Service Provider (ISP) may use a limited number of IP addresses
for all of its users. To protect against triggering the filter in this case, set up an
IP Address Velocity Ignore List (described in the online help).
What is Velocity?
In the risk management industry, an event’s velocity is a measure of its frequency of
occurrence during a defined time period. Unusually high velocity is can be associated with a
fraudster making repeated attacks on a system. Legitimate customers do not typically perform
multiple transactions in quick succession.
How does the filter protect me?
Fraudsters often submit multiple purchases using an automated script that tests unknown card
numbers. Alternatively, the fraudster may attempt to bypass other filters by making multiple
small purchases with multiple stolen account numbers.
High-risk Customer Filters
Bad Lists
What does the filter do?
This filter compares the customer’s e-mail address and credit card number against lists (that
you create) of addresses and numbers for known bad customers.