Alongside the bank-based initiatives, there has also been the rise of independent anti-fraud services like The 3rd Man, which now checks more than 20 million online payments a month, claiming to detect around 97% of all fraud. I must declare an interest here as my company, Actinic, has integrated The 3rd Man into its own payments service.The many elements that the anti-fraud services look at include IP address, electoral roll and spending patterns across cards, buyers and addresses. It also collects information on chargebacks, and can flag up buyers that consistently lie in order to get free goods. The database of the fraud-free transactions is just as important as the ones with issues. If a card is reused at the same address and same IP address where it has previously been used with no problems, the transaction is probably safe.
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