At SendKey we work with all kinds of businesses selling a variety of digital products. Digital products can range from gift cards to music all the way to a website template. Many users who wish to sell more expensive products will encounter the high rates of fraud that this industry can encounter.

If you're just getting started in the industry then you may be used to selling low value products and you're not a great deal out of pocket if someone files for a chargeback.

Below we will talk about some of the best ways that you can reduce fraud.

Send your customer to a website to access their product.

Instead of sending your customer instant access to their product, try sending them to a landing page where they can access their product. Often fraudulent users are scared of landing pages and will ask you to send the product over email or message. Once you have the customer on your landing page you can then use our fraud rules to start checking information about where they are and what sort of connection they are using.

Verifying fraud via lookups

Many pieces of information can be established from an IP lookup, email lookup or device lookup. Once you start looking at this information for fraudulent orders you’ll very easily begin to see patterns between your orders. The most common things that we see are fraudsters using VPNs or Tor browser to try and access products, thankfully these are often very easy to detect and can reduce a large amount of fraud.

SMS or Phone Verification

If everything is checking out but you’re still concerned, you can ask the user to verify their phone number. This will allow you to verify that they have a valid phone in the country that they should be located in. Often fraudsters are located overseas and aren’t able to verify their phone numbers.

Make Your Process Clear

Make it clear to your buyers that you take the steps necessary to protect yourself against fraud, you can add things to your item description to let people know that you have a strict policy against fraudulent activity. Depending on the item you may consider mentioning that you require phone verification on that item.

Whatever steps you decide to take, we hope that you consider these points and help us to tackle fraud in the digital product industry.