An influx of fraudulent orders
When Chicago Music Exchange switched their website platform provider, they found that they needed a more robust fraud prevention system to combat the fraudulent orders being attempted on their site. CME encountered fraudsters on a card-testing mission, placing small to medium-value orders to see what would get through, testing the waters before moving to higher-value items. Once a fraudulent order got through, it was very easy for these cybercriminals to cycle through stolen email addresses and passwords—likely purchased on the dark web—and create fraudulent new accounts to multiply their gains.
Chicago Music Exchange especially had difficulty with orders sent to freight forwarding companies, which required an added level of verification to authenticate the transactions and addresses. This meant that CME had to manually contact the customer or research the address of where it was being shipped, which was time consuming and not always effective. This was particularly true for more complicated overseas orders—and every time, CME was left to handle the loss.