Fraud Plan
At DigetPay, we are committed to maintaining strong payment security standards and reducing fraud exposure across all payment channels.
This section explains how DigetPay monitors suspicious activity, detects fraud patterns, manages high-risk transactions, and cooperates with merchants to protect customers, merchants, and the payment ecosystem.
Fraud Monitoring System
DigetPay uses a fraud monitoring process to review transactions and identify suspicious behavior.
The system monitors transaction activity and flags patterns such as:
- Excessive failed payment attempts — Multiple unsuccessful transaction attempts in short timeframe
- Unusual transaction amounts — Transactions significantly above or below customer average
- Sudden increase in transaction volume — Abnormal spike in transaction frequency
- High-risk BIN ranges — Cards from high-risk issuing countries or card types
- IP geolocation mismatch — Transaction location inconsistent with customer profile
- Repeated card use across accounts — Same card linked to multiple customer accounts
- Multiple cards per customer — Single customer using numerous different cards
- Suspicious refund behavior — Unusual refund patterns or high refund rates
- Unusual cross-border activity — Transactions crossing borders inconsistently
- High chargeback activity — Elevated chargeback rates from specific cards or customers
- Inconsistent merchant activity — Transactions misaligned with merchant's normal business
| Risk Indicator | Severity | Action |
|---|---|---|
| Excessive failed attempts | High | Immediate review |
| Unusual transaction amounts | Medium | Flag for monitoring |
| Sudden volume spike | High | Block pending verification |
| High-risk BIN | Medium | Enhanced verification |
| IP geolocation mismatch | Medium | Additional checks |
Important: Flagged transactions may be reviewed by the operations, compliance, or fraud team before further action is taken. Merchants should not ignore these alerts.
Key Fraud Prevention Measures
1. 3D Secure Authentication
3D Secure authentication is used for eligible card transactions to help verify the cardholder's identity and reduce unauthorized payment risk.
Where applicable, transactions may be routed through 3DS before authorization is completed.
| Authentication Method | Coverage | Liability Reduction |
|---|---|---|
| 3D Secure v1 | Standard cards | 70% |
| 3D Secure v2 | All eligible cards | 85% |
| Biometric verification | Premium cards | 95% |
✓ Key Benefit: 3D Secure significantly reduces liability for unauthorized transactions and increases customer trust.
2. Velocity Checks
Velocity checks help detect unusual transaction frequency from the same card, IP address, customer account, device, merchant, email, or mobile number.
Velocity Check Coverage:
| Check Type | Detection Window | Threshold |
|---|---|---|
| Card | 1 hour | 5+ transactions |
| IP address | 30 minutes | 10+ transactions |
| Customer account | 1 hour | 8+ transactions |
| Device | 2 hours | 6+ transactions |
| 24 hours | 3+ new accounts | |
| Mobile number | 24 hours | 5+ accounts |
Examples include repeated failed attempts, multiple transactions within a short time, or abnormal payment behavior compared to normal merchant activity.
Critical: Repeated failed attempts within minutes may indicate automated fraud attempts. Implement rate limiting on your checkout page.
3. Geo-location Validation
Geo-location validation compares transaction location signals with customer and payment information to identify mismatches that may indicate fraud.
Location Signals Reviewed:
| Signal Type | Risk Level if Mismatched | Verification Required |
|---|---|---|
| Customer IP location | High | Yes |
| Card issuing country | Medium | Conditional |
| Billing country | Medium | Conditional |
| Shipping country | Low | No |
| Merchant country | High | Yes |
A mismatch does not always mean fraud, but it may increase the transaction risk score and trigger review.
ℹ️ Note: International transactions are common but require additional verification. Always confirm customer identity for cross-border orders.
4. Device Fingerprinting
Device fingerprinting helps identify suspicious devices and repeated behavior across different accounts or transactions.
Detection Capabilities:
| Capability | Detection Rate | False Positive Rate |
|---|---|---|
| Reused high-risk devices | 92% | 2% |
| Multiple accounts per device | 88% | 3% |
| Suspicious patterns | 85% | 4% |
| Automated attempts | 95% | 1% |
| Previously flagged devices | 98% | 0.5% |
✓ Advantage: Device fingerprinting can identify fraud rings operating from the same location or infrastructure.
5. BIN Checks
BIN checks validate card information based on the first digits of the card number to identify inconsistencies and high-risk cards.
BIN Data Points Analyzed:
| Data Point | Information Provided | Risk Assessment |
|---|---|---|
| Card issuing country | Geographic origin | High impact |
| Card type | Credit/Debit/Other | Medium impact |
| Card brand | Visa/MC/Amex/etc | Low impact |
| Card classification | Prepaid/Commercial | High impact |
| Issuer patterns | Risk profile | High impact |
BIN checks help detect inconsistencies between the payment card, customer information, and transaction context.
6. Blacklist Management
DigetPay may block or flag transactions linked to known high-risk identifiers to prevent fraud before it occurs.
Blacklist Categories:
| Category | Examples | Block Action |
|---|---|---|
| Card identifiers | Card numbers, tokens | Automatic block |
| Network identifiers | IP addresses | Review + block |
| Contact identifiers | Email, phone | Conditional block |
| Device identifiers | Fingerprints, IDs | Review + block |
| Account identifiers | Customer/merchant accounts | Automatic block |
Blacklisted items may be automatically blocked or sent for manual review depending on the risk level.
⚠️ Important: If your legitimate customers are being blocked, contact support immediately. We can whitelist trusted accounts.
Merchant Responsibilities
Merchants are expected to support fraud prevention by reviewing suspicious activity and applying safe operational practices.
Recommended Actions
- Review high-risk transactions before fulfillment — Prevent losses from fraudulent orders
- Monitor DigetPay dashboard regularly — Stay informed of flagged transactions
- Verify customer contact information — Confirm legitimate customer identity
- Track refund and chargeback rates — Identify emerging fraud patterns
- Maintain detailed records — Support dispute resolution and investigations
- Report suspicious activity — Help improve fraud detection systems
- Avoid manual approval of high-risk orders — Reduce exposure to fraud
Best Practices Checklist
| Practice | Priority | Impact |
|---|---|---|
| Review high-risk transactions before fulfillment | Critical | Prevents fraud losses |
| Monitor DigetPay dashboard | High | Early detection |
| Verify customer contact information | High | Identity confirmation |
| Track refund and chargeback rates | Medium | Pattern identification |
| Maintain detailed records | High | Dispute support |
| Report suspicious activity | Medium | System improvement |
| Avoid manual approval of flagged orders | Critical | Liability reduction |
✓ Essential Practices for Fraud Prevention:
- ✓ Avoid shipping goods or providing services before reviewing high-risk transactions
- ✓ Monitor the DigetPay dashboard for flagged transactions
- ✓ Review unusual order values, repeated failed attempts, and suspicious customer behavior
- ✓ Verify customer phone number and email when needed
- ✓ Monitor refund and chargeback rates
- ✓ Avoid manual approval of high-ticket, suspicious, or cross-border orders without review
- ✓ Keep order, delivery, and customer communication records
- ✓ Report suspicious activity to DigetPay support or operations team
⚠️ Warning: Manual approval of flagged transactions significantly increases your fraud liability. Always follow the system's recommendations.
Contact Support
For fraud-related concerns, merchants should contact:
Updated 18 days ago