Unsavory and unscrupulous Internet users posing as online shoppers can cost you and your e-company big money. And if you are operating a start-up or home-based e-store, credit card fraud can quickly put you out of e-business.

Here are some quick and easy methods for spotting and stopping theft from being perpetrated upon your site:

• Have a set of eyes review every order. Sometimes a fraudulent order will have "red flags" that cause suspicion. Use your instincts to follow up on inconsistencies between shipping and billing information, unusually large orders and delivery requests to post office boxes. Many customers will use a free e-mail client for online shopping as a method for reducing mailbox clutter but if an already suspicious order also carries a free e-mail address, you should investigate further.
• Subscribe to an address verification service. The risk for fraud can be reduced as well as non-delivery due to typos and transposed numbers. The investment will ultimately save time and money by authenticating delivery information and speeding up fulfillment.
• Try to substantiate as much customer information as possible on your own before using a professional verification service. Web sites like Anywho.com offer reverse telephone look-up and e-mail address searches. Additionally, domain registration information is easy to obtain from sites such as CheckDomain.com.
• Prominently display warning notices on your site that stress prosecution to cyberthieves. Sophisticated credit card crooks may not be completely deterred but they will be sufficiently warned that efforts are made to prevent theft.
• When in doubt, call the issuing credit card company or bank. Financial institutions have much more comprehensive investigation tools than the average e-business and they take fraud very seriously. If cybercrime is suspected, they can do the research and decide whether or not to authorize the transaction.

With all the challenges e-commerce businesses face these days, it is important to eliminate as much risk as possible. Using good judgment when processing credit card transactions can possibly extend the lifespan of your company.

These articles contain valuable information and resources on this growing problem:
Online Fraud: The Merchant's Dilemma
Eliminating Some Credit Card Risk for E-Business
Code Sample: Authenticating User E-mails -- This piece of code allows for routine checks to valid e-mail addresses that are entered into a form. It will then generate an outbound e-mail with a direct link to confirm registration.