Top Tips on avoiding CNP (cardholder not present) fraud:

• Take time and effort to validate each order. Don't accept orders unless complete information is provided, including full address and phone number.
• Be wary of orders that come from free email services, especially yahoo, as there is a higher incidence of fraud from them.
• Take extra interest in orders that are larger than your typical order amount. Does it fit your typical customer?
• Take extra care with international orders and do everything you can to validate the order before shipping. Especially be wary of orders from Eastern Europe, Nigeria, Israel, Saudi, UAE and Iraq, as there has been a particularly high incidence of fraud relating to on-line purchases from these areas.
• Do not allow a consumer to make an alteration of the delivery address at short notice. Avoid sending goods to guesthouses or hotels unless you are confident that the customer is genuine.
• Be wary of a consumer who demands next day delivery and/or phones on the day of delivery asking what time the goods will be delivered.
• Do not accept orders from a consumer quoting someone else's card details e.g. wife using her husband's card.
• Be wary of a consumer who offers several card numbers to cover an order as they may be attempting to avoid authorisation detection, or working through a list of cards.

If you have any suspicions, consider contacting the customer.  It might cost money and take time, but if they are genuine, then you have a new customer and if they are trying to defraud you then you have prevented them...either way you win!

If an order seems too good to be true it probably is.