The theft of personal information and credit card fraud is at an all-time high. Businesses must accept payment through the web and mobile devices to attract consumers and offer as many clients as possible. These payment methods bear a higher risk than face-to-face transactions.

Businesses must be mindful of these dangers and be prepared to defend themselves from fraud. Theft of identity and credit card fraud are big criminal enterprises. As the number of payment options expands, the strategies will continue to change. Stop the payment, contact the customer, and look into the situation if you see any of the fraudulent schemes mentioned below.

Many payment fraud schemes start innocently enough. Keep an eye out for the following red flags that may suggest fraud:

  • The name on the credit card does not fit the name on the invoice.
  • The invoice zip code does not fit the billing address zip code.
  • A reshipper’s address is used as the ship-to address.
    1. Dropshipping is a term that refers to
    2. Reshipment instructions are included in the shipping instructions if you pay for shipping upfront.
    3. An invoice that has been overpaid.
  • Unverified identification of the cardholder.
  • In a short period, a large number of transactions are completed.
  • Using several credit cards with the same address is a big no-no.
  • Different credit card numbers and addresses on a single credit card.

Detecting & Mitigating Fraud in QuickBooks

If you see any of the above examples, you aren’t necessarily a fraud target. However, if you come across any of these when making payments, the company might be at risk of financial loss due to fraudsters targeting you. If you see this type of conduct, you should take steps to protect your business.

  • Don’t ship something until you’ve double-checked your customer records.
  • Do not offer any service until the customer information has been confirmed.
  • Avoid making payments (or stop further charge if the price has already been processed)
  • Make contact with the client (and related parties)
  • Look through the situation.

Stop Making Payments

If you see any of the above red flags, you should ideally avoid the payment. Unfortunately, since most online prices are automated, you can not notice suspicious activity until the payment has been processed. If you can’t avoid the first invoice, the customer on amount holds and doesn’t ship the goods. Keep the customer’s payment on hold until you’ve gotten more information from them.

Contact the Client

Genuine customers are generally eager to assist you in resolving any concerns you might have about fraudulent payments. Customers want their products or services as soon as possible so that you can get genuine customer reviews as quickly as possible.

Fraudulent consumers, on the other hand, would generally resist dialogue or straightforward logic. Generally is a significant point here because more advanced fraudsters may try to pass themselves off as legitimate by providing fake documents. Make an effort to speak with your customer in person or on the internet. Over email or other forms of online communication, fraudsters can more easily continue the fraudulent activity.

Security measures to protection in QuickBooks:  Investigate the red flag circumstances after you’ve stopped payment and contacted your client. Each red flag may have a plausible reason, but it could also be the start of a fraud investigation into your business. Depending on the fraudulent scheme, the investigative methods will change. Investigate suspicious activity using the techniques mentioned below.

The Zip Code on the Invoice Doesn't Match the Billing Address

If the zip code mismatch is due to fraud, the customer’s credit card information has most likely been stolen. If the fraudster has full credit card details, similar to the name mismatch, the payment processor would most likely complete the transaction. It’s up to you to figure out why a customer will use a credit card with a different zip code than their address.

Security measures to protection in QuickBooks: Inquire directly with the consumer why the zip codes don’t fit. There’s a chance the consumer has a good reason (e.g. recent move, a remote employee for a business purchase, multiple residences, etc.). A genuine consumer should be able to justify the difference with ease.

Proceed with the payment if you are satisfied with the customer’s responsibility. If you have any doubts, request additional evidence that the customer is the card’s legitimate owner. Request a copy of the customer’s current power bill or lease if the customer has recently relocated. If the consumer is an out-of-state employee purchasing on behalf of a company, demand proof of employment.


In conclusion, QuickBooks Desktop software is accounting software that helps you manage finances and accounts in any kind of businesses and organisations. I hope this blog helps you understand the frauds that take place regularly and how you can avoid them, so I request you to please read the whole blog and relieve yourself from the hustle.

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