- Behind the Scenes
Protecting your events from ticket fraud
By Ben Sebborn
- 26 May 2016
- 3 min read
Fraud is an ever-increasing threat to event promoters, with the potential for great loss if tickets are subject to a chargeback – especially if your event has already passed and you can’t place the tickets back on sale.
Fraud takes several forms. It could be tickets purchased on a stolen card, where the bank is still authorising the transactions (quite common when the card has been copied without the cardholder’s permission). Or maybe an organised movement looking to buy tickets in bulk and resell them at a profit. Whichever form it takes, usually the customer and event promoter end up losing out.
Skiddle have developed a sophisticated and intelligent anti-fraud service, based upon years of experience and in conjunction with our payment processors.
So what does it offer, and how does it protect you?
- All transactions are passed through 3D Secure. This gives a ‘liability shift’ for most transactions, meaning you are protected from chargebacks should the cardholder deny taking part in the transaction. It’s not available for all cards in all countries, but for UK based cards it should cover a large proportion of your salesBeware of any ticket agent that doesn’t use 3D Secure if you are liable for chargebacks, as this is one of the biggest steps that can be taken to reduce your liability.
- Card details, such as address/postcode and CV2 code are checked with the card-issuing bank
- We take device fingerprints and compare these to spot instances where fraud is being attempted using different cards or accounts but with a common pc or smartphone.
- Each transaction is subject to strict rate-limiting to ensure that fraudsters cannot process a large number of transactions in a short period of time
- Our fraud scoring engine then looks at over 30 attributes of each sale and creates a fraud score. This can either trigger an immediate reversal, a manual check or a pass. Our fraud scoring rules are adjusted as we learn about new threats or vectors, and can be weighted for different events dependant upon their risk
- Our operations team also have access to sophisticated ‘global views’ of transactions helping us spot fraud patterns that automated systems may check.
We are constantly improving our systems to provide the best protection possible at all times.
Our fraud protection system is included free of charge on any transaction where we process the funds (this is the default when selling tickets with Skiddle).