We work hard to help prevent fraud, but every online transaction still carries some risk. That’s why we recommend that all merchants take a proactive approach to risk management.
If something seems too good to be true, it probably is. While none of these warning signs necessarily mean an order is fraudulent, it is important to look out for the following:
The shipping address is a high-risk location.
These are places well-known for fraud. Search online to find a list of high-risk countries.
The order is larger than normal.
The customer asks to change the shipping address after paying.
There’s an abnormal number of international orders within a short time.
There’s an abnormal number of orders at an unusual time of day.
MSeveral orders from different customers have the same shipping address.
You receive multiple orders from the same PayPal account around the same time.
A customer overpays.
An order consists of multiple requests for the same item.
A customer requests rush or overnight shipping.
A customer uses a suspicious email address.
An order has a suspicious shipping address.
The amount of time you spend on fraud prevention will depend on what you are selling, who your customers are, and the amount of risk you're willing to take. If you sell expensive, in-demand products, your fraud prevention and detection processes are even more critical.
You're responsible for fraud losses that aren't covered by PayPal Seller Protection. Opportunistic fraudsters take advantage of businesses that aren’t aware of fraud risks. Nobody knows your business as well as you. You know your biggest customers and are familiar with their buying patterns. No payment processor will ever know these things as well as you, so your involvement in risk management is essential.