Quote:
Originally Posted by ScottW
Seems like simple CC fraud that should have been caught by Rapha and/or the CC companies before the merch was shipped out, since the shipping address/es will not match the billing address/es of the stolen card/s. Is there a more innovative scheme at play, or were all of the fraud monitors on vacation this week?
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This scam has been around a few years now and typically focuses on high value items that can be deeply discounted while still returning a decent payday for the scammer, per sale.
This is really hard to pick up on before the fact without having heaps of false positives.
That is - having different shipping and billing recipient is a legitimate business case. Nothing wrong with that.
Sometimes you can see the transaction is being made a distance away from the billing/shipping address(es) but again this isn’t always indicative of fraud, and isn’t always the case, and can be worked around with VPN/proxies.
You’d also be surprised at how unsophisticated most merchant (ie rapha) payment gateways are.
Additionally a competitive tension in this situation is that many fraud protection measures act to reduce sales conversion. So lax fraud protection on Rapha’s part may be a conscious decision to maximise sales and eat the fraud.
Ultimately Rapha is the one who will lose here. When the stolen cardholder reports the transaction, the bank gives the cardholder their money back and claws back the funds from Rapha.
Source: I work in e-commerce. We got stung by this 3 years ago and had to implement both software based and manual processes to overcome this sort of a scam.