In the world of e-commerce, fraud prevention has become more sophisticated than ever. Merchants need powerful tools that not only block suspicious transactions but also provide deep insights into customer behavior based on the type of products sold. Recognizing this need, FraudLabs Pro has introduced Advanced Item Type Validation, a new set of rules designed to help merchants detect suspicious activities based on the classification of purchased items, specifically Downloadable and Physical products.
Understanding Advanced Item Type Validation
Advanced Item Type Validation allows merchants to apply specific validation rules that analyze transactions based on the type of items included in an order. This feature provides granular control, empowering merchants to implement targeted checks that consider whether the items are physical goods requiring shipment (Physical products) or downloadable digital products delivered electronically (Downloadable products).
The key advantage of this approach is that fraud patterns often differ based on the product type. For example, fraudsters tend to target downloadable items because they can be accessed immediately, making it more challenging for merchants to intervene once a fraudulent transaction occurs. On the other hand, physical items may present different fraud risks, such as the use of stolen shipping addresses or reshipping schemes.
New Validation Rules Available
The Advanced Item Type Validation feature introduces six powerful new validation rules, designed to monitor both order quantity and transaction patterns based on item type.
These rules are only available for subscribers of the Small plan or above and for the supported platforms below:
- WooCommerce
- Magento
- OpenCart
- Shopify
- BigCommerce
- Ecwid by Lightspeed
- PrestaShop
- EasyDigitalDownloads
- ZenCart
- CubeCart
- CS-Cart
- AbanteCart
- ThirtyBees
The available rules include:
- Total Quantity By Downloadable Item Greater/Less than [Custom Value]
- Total Quantity By Physical Item Greater/Less than [Custom Value]
- Total Transaction By Downloadable Item Within The Last 24 Hours Greater/Less than [Custom Value]
- Total Transaction By Downloadable Item Within The Last 7 Days Greater/Less than [Custom Value]
- Total Transaction By Physical Item Within The Last 24 Hours Greater/Less than [Custom Value]
- Total Transaction By Physical Item Within The Last 7 Days Greater/Less than [Custom Value]
Below are the procedures on how to set up the new Advanced Item Type Validation Rule:
- Login to the FraudLabs Pro merchant area and click on the Rules menu.
- On the Rules page, click on the “Add Rule” button.
- On the Rule dropdown, select “Total Quantity By Downloadable Item Greater/Less than [Custom Value]“.
- In the Value section, enter a value. Please see the below screenshot for example.
- Select the Action and then click on the “Save” button.
- Done.
Why Is This Important?
Fraudsters often exploit vulnerabilities based on product type. Downloadable items, due to their instant accessibility, are frequent targets. Likewise, physical goods may be subjected to abuse through stolen credit cards and fraudulent shipping information. With Advanced Item Type Validation, merchants gain the ability to apply distinct thresholds and rules tailored to these item categories, improving fraud detection accuracy and reducing false positives.
By implementing these rules, merchants can:
- Reduce the risk of chargebacks and financial loss
- Detect bulk purchasing attempts of high-risk digital goods
- Identify suspicious transaction patterns for both product types
- Maintain better control over order volumes
- Automate fraud prevention based on proven behavioral indicators
Conclusion
Advanced Item Type Validation is a game-changing addition to the FraudLabs Pro suite for merchants subscribed to the Small plan or above. It empowers businesses to implement item-type-specific fraud detection, providing a more intelligent, data-driven approach to protecting online stores. In today’s fast-paced e-commerce environment, where fraud techniques continue to evolve, this feature offers merchants a valuable layer of defense that goes beyond generic fraud checks and ensuring both physical and digital goods are safeguarded effectively.
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