In this article, we are going to share with you the Top 10 validation rules used by our WHMCS merchants to help them in fighting fraud. This list could be used as a reference to configure your initial validation rules, if you are not sure of where to begin. The below chart shows the data compiled, sorted and aggregated up to June-2020.
From the chart above, you will notice the blacklist rules are mostly used by our merchants to detect fraud orders, with a combined total of up to 46.4% for both Email and IP blacklist checks. Blacklist rule is an effective way to detect the fraudulent act by leveraging the collaborative efforts from other merchants using the fraud data shared in the merchant networks. This fraud data is collected and processed in real-time so that it could be applied immediately to curb the same scheme from victimizing other merchants.
Anonymous Proxy is also another popular and important validation rule, which has taken up a substantial slice of 23.27% from the chart above, that you could consider to add into your list. The Anonymous Proxy could help you to uncover those fraudsters who are hiding their true locality behind the proxy to prevent them from getting tracked if their fraud action was detected.
Billing Country Not Equal to Shipping Country validation rule took the 4th position in the Top 10 list. Whenever the buyers purchase the products or services, the billing and sending addresses should be in close geographic proximity with each other. It is a very rare occurrence that the address is crossing the national boundaries. One of the reasons could be the fraudsters had no choice but to use the billing address on the file of the stolen card for order submission, and then instruct the item or service to be delivered to another country.
The above mentioned 4 validation rules account for up to 88.83% of the total validation rules used by the WMCHS merchants, a vast majority over the total rules used. Having said that, it doesn’t mean that you should insert them all into your list due to the popularity. The chart is just a reference, and you should choose the rules that best fit your business needs.
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