Suspected fraud – what to do?

Fraud attempts ​by end customers occur very rarely: far less than one percent of all transactions carried out via Digistore24 have occurred from proven fraudulent intent.
​For this reason, the probability that you will ever become a victim of fraud is extremely low. If you think you are the subject of fraud, ​this article will tell you what you can do and how Digistore24 will protect you.

Please report all fraud attempts.

Even if less than 1% turn out to be attempted fraud, please carefully evaluate your suspicion of a fraud attempt. If you still think it may be fraud, simply report the case using the “Report fraud” function. This will help prevent further potential fraud attempts and make our platform even safer.

What is fraud?

​In the context of payment processing, fraud is a deliberate deception of the contractual partner (i.e. Digistore24) or the vendor that results in a loss of money.

​Examples of fraud on Digistore24 could be:

  • ​A customer intentionally gives false payment details, meaning that the amount cannot be debited.
  • ​A customer intentionally carries out a ​chargeback at the end of the return period.
  • ​A customer falsifies information in order to convince a vendor to give a (partial) refund.
  • ​A customer pretends to be an affiliate so they don't have to pay as much.

​How does Digistore24 protect me against fraud?

​Fraud detection software

​Our fraud detection software works in the background and checks all purchases against some of the parameters we set. The software is primarily designed for large-scale fraud attempts.

The software works on the basis of aggregated data that we have been collecting since 2012. This wealth of information at our disposal means our fraud detection software is already very advanced.​

​Credit reports

Digistore24 works with creditPass to protect you from potential payment defaults. This protection is included in the Digistore24 margin.

Before a payment is made, a central database checks whether the customer has attracted negative attention in their bank transactions.
​This database is linked to Schufa and various other financial institutions: If the customer is flagged on their systems, the payment is rejected in order to protect you from possible chargeback fees.

​In order to prevent access to the product in the case of a payment failure, Digistore24 has an API interface which the system uses to communicate with the member software.​
​You can access the interface here: https://www.digistore24.com/extern/test/ipn.

​Blacklist

Digistore24 has a blacklist on which we record individuals (and their data) who are no longer wanted as customers by us. These individuals will be excluded from further purchases on Digistore24.

In order for a customer to be blocked for all purchases on Digistore24, a Digistore24 employee must verify this or the customer must be detected by our fraud detection software. Alternatively, you can also prevent customers from purchasing your products at any time by ​​blocking an email address or part of an email address - you don't even have to state your reason for doing so!

How do I report fraud?

First of all, you should make sure that it is actually attempted fraud. In most cases, there has been a misunderstanding or a mistake made by the customer. For example, ​an average of ~90% of chargebacks for first-class products turn out not to be cases of fraud and are withdrawn later on.

​If you think that your customer or affiliate has acted in a fraudulent manner, you can report the fraud. This will have the following consequences:

  • ​The customer cannot buy any further products from you.
  • ​Following approval from Digistore24, the customer is blocked from purchasing all products via Digistore24.
  • ​Digistore24 considers legal action against the customer if there has been a blatant attempt at fraud.

​To report a ​transaction as fraud​, proceed as follows:

  1. ​In the vendor view, go to ​Account > Transactions.
  2. ​Click on the flag symbol "Report fraud" next to the suspicious transaction.
  3. ​Give the reason why you think the transaction is suspicious.
  4. Choose whether you want to accuse only the customer, or both the customer and the affiliate of fraud.​
  5. ​The email address is now added to your ​​blacklist, the customer is blocked from using your products and the reason you stated is sent to Digistore24 for further review.

​Manually add email addresses to the blacklist

Step-by-step guide

​How do I proceed with outstanding payments/chargebacks?

​As has already been mentioned, in the most cases there is a misunderstanding or error on the part of the customer and no actual attempt at fraud.
​For example: If you receive a chargeback, the reason in most cases is a faulty account connection or insufficient funds in the customer's account.

Nevertheless, ​​chargebacks are especially annoying since they incur costs for you. If an end customer carries out a chargeback (whether intentionally or not), a fee is due which the recipient bank has to pay, which usually falls back on you (more information about this can be found ​here).

​Given the fact that most cases can be clarified quickly and there is no intentional deception, we always advise that you speak to the customer first.

If that does not work, you have the following options:

Automatic dunning procedure

If you have activated the ​automatic dunning procedure, Digistore24 automatically sends out dunning emails to inform the customer about the payment failure.

The reminder emails are sent 7, 14 and 21 days after the due date.

​Attention​​​​The direct debit fees will not be invoiced during the dunning procedure. These must be claimed externally.

Reporting fraud on Digistore24

As already mentioned, you should block the suspicious customer and/or affiliate if you suspect possible fraud. You can find out how to do this here.

Updated on 15. May 2020

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