Credit card fraud - how to prevent ?

[billc108]

Hi folks,

We launched a site in the fall for a fairly high end jewelry store. Business hasn't really taken off real big yet, so every order can be looked at carefully.

They received orders on the 26th and 27th from new customers for mid range products ($350-$375). Nothing remarkable about the orders other than that both were ordered from Los Angeles area addresses and both were sent to different addresses than the billing address. The orders were shipped, fedex 2-day as the customers paid for.

Today they received two more orders from the same customers, three minutes apart, for larger purchases. The store manager began to get suspicious. FedEx delivered the second of the original packages before they were able to put a hold on it.

Each order came from a different IP address. Tracking back on the settled transatactions, we've so far discovered that one of the purchases was definitely fraud.

Meantime, a third customer today made an identical order to the first one. This time in another state. Once again, delivery is to a different address.

All the card info checks out - CVV, address, zip, name on card, expiration, etc. We're using Authorize.net for credit card processing, and since everything on the card is good they let it pass.

We're not shipping any more items on these accounts until we're sure the purchases are clear, and will probably pursue legal action on the delivered goods.

Meantime, are there any suggestions as to what else we can do to keep incidents such as this from occuring again?