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Education

credit card number, or thousands of Because of the volume of virtual, in-game transactions, publishers accept some
them, and then begins making test level of chargebacks, even fraudulent chargebacks, as a cost of doing business.
purchases. These are small, incre- That shouldn't be the case because there are ways for online game publishers
mental purchases at first, but they to take on chargebacks and fraudsters that preserve their revenue flow and
grow into much more expensive, customer experience.
costly ones once the fraudster knows Suresh Dakshina is the president of Chargeback Gurus. A pioneer in data analytics and industry-
the stolen cards are valid. Each of specific risk management, he is a certified ecommerce fraud prevention specialist and Certified
these charges, big or small, can be-
come a chargeback filed by the credit Payments Professional. He understands first-hand the challenges that business owners face, espe-
card's real owner. cially when it comes to chargebacks and fraud. Contact him at suresh@chargebackgurus.com.
Combating card testing: One way
to prevent card testing is to have a
fraud prevention tool in place. A
good tool can do a velocity check, it
can put a restriction on the number
of instances that a transaction can
come from a particular IP, and it
can see how many cards are being
used on a single account. This will
help block those accounts and pre-
vent card testing from happening.
True fraud

This is where a credit card is stolen,
the card is used to build up a game ac-
count and then the account is sold on
an online trading site. When the real
cardholder discovers these charges,
the cardholder will be able to file a
chargeback dispute. The criminals
can sell the accounts for much less
than the amount they charged to the
card because it is all profit to them,
and the harm falls on the card owner
and online game publisher.
Fighting true fraud: One of the
best ways to fight this kind of
fraud is to have fraud filters and
use external tools such as a Pay-
ment Card Industry-compliant
payment gateway. It should come
with fraud screening features, as
well as Address Verification Sys-
tem (AVS) and Credit Verification
Value (CVV) matching. This is one
area where gaming companies are
failing because they turn off these
filters by default. Having the AVS
and CVV will require the card
owner provide an address and
CVV. This will help cut into identi-
ty theft since criminals are likely to
only have part of this information.

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