TL;DR
Card fraud investigations need a systematic approach. This guide covers checking transaction logs, looking at IP addresses, examining device information, contacting banks and payment processors, and reporting to authorities. Quick action is key.
Tracing Card Fraud: A Step-by-Step Guide
- Gather Information
- Collect all available details about the fraudulent transactions:
- Date and time of each transaction.
- Amount of each transaction.
- Merchant involved (name, location).
- Cardholder’s account number (last four digits only for security!).
- Any error messages received.
- Access your transaction logs (e-commerce platform, payment gateway).
- Filter by date/time to isolate suspicious activity.
- Look for patterns: multiple transactions in a short period, unusual amounts, different shipping addresses.
- Example log entry snippet:
2024-10-27 14:35:00 - Transaction ID: 123456789 - Amount: £50.00 - IP Address: 192.168.1.100
- Use an IP lookup tool (e.g., IP Location) to determine the geographical location of the IP address used for the fraudulent transaction(s).
- Compare this location with the cardholder’s usual location. Significant discrepancies are a red flag.
- Check if the IP address is associated with known proxies or VPN services. This can indicate an attempt to hide the user’s true location.
- If available (e.g., through payment gateway features), review device fingerprints, browser information, and operating systems used for the transactions.
- Look for inconsistencies: a new device being used with an old account, unusual browser versions.
- Report the fraudulent activity to your payment processor (e.g., Stripe, PayPal). They can provide additional information and assistance.
- They may have fraud detection tools that identify similar patterns of abuse.
- Request a chargeback for the fraudulent transactions.
- Inform the bank about the suspected fraud. They will investigate from the cardholder’s side and may issue a new card.
- Cooperate with their investigation, providing all gathered information.
- Assess your current security protocols:
- Is your website using HTTPS?
- Are you PCI DSS compliant (if applicable)?
- Do you have strong password policies in place?
- Are you using fraud prevention tools (e.g., address verification system – AVS, card verification value – CVV checks)?
- Depending on the severity and amount of fraud, consider reporting it to your local police or a cyber security crime unit.
- In the UK, report online fraud to Action Fraud.
- Keep detailed records of all communication, transaction logs, IP addresses, device information, and any other relevant data. This documentation will be crucial for investigations and potential legal proceedings.