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They Tried To Scam Me – How I Find Credit Card Fraud

They Tried To Scam Me – How I Find Credit Card Fraud


Someone is doing something shady here, and we’re gonna find them out Hey, what’s up? So I’m having a busy day today a lot of stuff going on we’re having some meetings with true Vani to try and figure out Some product ingredients sourcing we had to get our new daily vlog up for today And if you didn’t see yesterday’s vlog you need to watch it. We go into the jungle and find a magic Bell It’s dense But today, I noticed that I got an alert from someone telling me that someone was sharing one of my courses illegally on some Blackhat forum and it’s interesting because this product has never been shared before Outside of our customer base, so it’s kind of compelling like how did this happen well we actually just sold this product to people within the past couple of weeks and This forum post was put up about a day ago So I’m about to have a conversation with one of my team members if we can see Who purchased this product within the last week or so to see if we can figure out who bought the product and now is? Illegally distributing the product. Do you have any idea who could be? Right now you said he had a few different IPS did we check every IP address Got’em I think it’s this person there this person is saying they’re using a credit card with the billing address in Texas and The IP address they purchased from is in South Africa this person Alright I had to change it up I don’t usually spend this much time trying to route out fraud In our company and the reason why is because we don’t get that much of it We might get one fraudulent transaction for every 500 and at the end of the day we’re not shipping physical products to people so there’s no hard cost of a fraud if we were in the business of actually sending a computer to someone fraud detection becomes even more important But today I wanted to do it for a couple of reasons because I know many people who watch this do have hard costs associated with fraud Also, it’s kind of obnoxious To know that someone is stealing your work or taking advantage of you, so I want to kind of share quickly How we find most of our fraud the first thing is we just track the purchase And what I mean by track the purchase is look at the IP address of the person who’s purchasing put it in a reverse geolocation thing where you could turn an IP address into an approximate location and Then compare that to the billing address In our experience you could find most fraud cases just by This little trick of using the IP address to find where people are in the world and see if it matches the billing address Now it’s not all cases of fraud But that’s usually a good indicator to start looking there The second thing that you can do is we always require people give us a phone number on every purchase and The reason why is because if they want to buy something from us, they’re not they’re giving us a credit card number Why would they be scared to give us a phone number to you know you might see that? when you ask people for more data like names addresses and stuff that kind of lowers conversion rates, and maybe it does but We like to get a phone number Because it just helps us connect with the customer one more way and also What are we able to contact the customer about the order the phone number is a good thing to have in our experience fraudulent transactions? almost always give fake phone numbers Or they give a phone number to some random place in the world I remember one time we found the fraudulent transaction that gave us a phone number to a McDonald’s Obviously wasn’t the right phone number stuff like that starts happening It’s usually another sign the third thing we look for in fraud is abnormal transactions. If things just look normal They’re acting normal You don’t want to go look for something, right? You don’t know look if there’s nothing happening but if all of a sudden If you’ve run an online store and all of a sudden you get a massive order that you’ve never seen before Don’t celebrate yet a firm believer that if it looks too. Good to be true it it might be too Good to be true. Just double-check at which point. That’s when you start double-checking this sort of stuff so those are three ways we kind of rat out fraud that said I Mentioned that I don’t personally spend my time on this stuff I did today because I knew it would be entertaining I knew it would create some drama, and I know it would make a good vlog episode But it also gives me an opportunity to tell you why I don’t spend my time on that you know. We’ve got lawyers I’ve got team members that can follow up with this stuff But the reason why I don’t spend my time on that because I believe The big difference between those who fail and those who succeed comes down to one little thing And that little thing is Successful people spend their time where they find maximum opportunity Think about that What do you have to gain from routing out one fraudulent transaction you might take a couple of hours You could save one transaction That’s the extent of the win one transaction what if you spend your time on creating a remarkable video a New piece of sales content a new way to acquire customers forging a new deal reaching out to five potential people to feature you this could lead to Hundreds of transactions all right maybe not hundreds ten transactions You’re better off putting your time where you have the potential for maximum opportunity and successful people do that all the time It’s not a fact. I was in the coffee shop earlier today, and I overheard a conversation between An entrepreneur who’s just starting their business and they were asking for advice from someone else The someone else seemed to be the expert, then there is the new business owner And they kept asking silly questions they kept asking questions about branding design S Corp or LLC Do I need business cards they kept asking these questions about their business, and I’m just sitting there like I wanted to interrupt no Stop You’re starting a new business you got to answer two questions What are you selling where the sales coming from that’s it? Successful people know where to put their time that has maximum opportunity When I started socialtriggers I had a horrible web design doesn’t mean I don’t like web design. I like web design I think good web design. Helps set you apart. I think professional video sets you apart crazy thumbnails sets you apart but in the beginning It’s not always that important Get some sales first move the needle focus on the things that have the maximum opportunity So even though today, we were able to find this fraudulent transaction, and we disabled their access I’m probably never gonna do that again? I’m going to leave that to my team and I’m gonna go back to creating great videos like this one I Want to try to come up with a viral video, that’s gonna make you want to share Because that’s where the opportunity is So if you like this video do me a favor like this channel like the video Subscribe to my channel hit the notification bell, you know I got a god. I got one of these to Get notified, and I’ll see you tomorrow

Comments (34)

  1. So sad that a paying customer would do that! What initially made the account suspicious, before seeing the card/ip address conflict? P.s. I love the wall plants!

  2. Haven't gotten to the stage of fraud yet, but I've always been aware that this is bound to happen as a company gets big. I'm not really worried about it and thus, I've never really thought about it, since I like to focus on creating value, but it's interesting how a few simple tricks such as cross-checking IPs and phone numbers can help you isolate the source. Will keep this in mind. Thanks!

  3. Such an important tip. Difficult for beginners to remember – it is so easy to mired in all the tiny details. This is something I am trying hard to remember this year!

  4. Is this the same guy who did this to Michael O’neal a few months ago? He watched every video, went on every page and then disputed the credit card charge. He was able to get the site (Michael posted the link on FB) to remove his course fairly easily.

    All that aside I think the important point is what successful people focus on. It’s so easy to go down the rabbit hole of negativity to chase a few dollars. God it feels so good to point out the assholery of others (see some internet pundit’s coffee shop stories) but how much more can be done with that time? (Don’t stop with the coffee shop stories though.)

    What are you selling?
    Where are the sales coming from?

    That’s simple genius there. Thank you for that.

  5. Derek, great point about putting your time where you have the potential for max opportunity. Hey you should do a vlog post about that story you mention: "NOOOO! I wanted to interrupt and say, the only 2 questions you need to know to start a business are…" P.S. – how many different bells and gongs do you have? Keep doing a different one in each video and people will tune in to see what you're going to ring next. lol

  6. It’s fascinating to see your sleuthing to figure this out! I have had it happen to me before, and it’s a bummer!! But I noticed it’s happen more with courses that I give as bonuses than actual paying customers. Thank you for sharing! Loving the Vlog keep it up!

  7. It's a sad statement on human kind that they feel they can only get money by stealing. sigh This is why it's so important to have a team to support you and do what needs to be done when this happens. Thanks for the peek at the underbelly today Derek.

  8. Ahhh.. Nice. Way to get all reverse-hacker on the fraudsters. LOL!

    Honestly, I think your point of "don't sweat the small stuff,' or maybe more accurately "figure out what to sell, and how to sell it… everything else is of secondary concern" is an excellent one. I can't tell you HOW MANY times I've caught myself making mountains out of molehills, or sinking time into some random BS aspect of my business (web design can be the ultimate time sink, amiright?! Well… Maybe it's social media. Haha!) only to have a lighbulb moment and realize, "wait a sec… I don't even have the basics nailed down and generating profit for me yet!"

  9. That was a perspective that I had never thought about. I live in Brazil and fraud is everywhere from our government to sleazy salespeople in the street trying to sell you sunglasses without uv protection and all kinds of shady stuff. That said, the most sucessfull people I know usually don't spend any of their time thinking about fraud as most of them would care so much for their costumer's success/well being that almost no fraud would happen and people would even feel bad to consider a fraud on them. That said, when you occupy your mental bandwidth with fear of being scammed you stop caring about what it is most important which is how can you bring more value to your costumers (after all if you think they will fraud you, you won't want their best). Great video Derek!

  10. But what if leakers are damaging your sales by sharing your product illegally?
    Personally, I came to the conclusion that those who care about you are going to support you by buying your products anyway.
    It took me a long time to look at it that way, so I hope it may be useful to somebody else as well.

  11. Oh no. I hear this a lot from course creators saying there’s a black market site selling online courses, and that their content is there. So sorry to hear this happened to you. And kudos for being the bigger person and letting karma play out.

    I love what you said: “The big difference between those who succeed and those who fail comes down to one little thing: Successful people spend their time where they find maximum opportunity.”

    Super agree. I remember, when my friend was teaching me chess, he told me that I was playing defense all the time that I could not strategize long-term moves. I always lost. This is the same lesson in life – when we react, we address short-term and just deal with what fires need to be put out. But when we live our lives with our sights on the long-term, the future, we win.

    Thanks for sharing this Derek!

  12. Great video to get you thinking about the core of your business and what's really important!! I wrote down the two questions and the important phrase about successful people what separates successful people, for me the two take away's of this video…

  13. I wish I'd heard the advice about where to spend your time in the beginning. There's so much hype about needing the prettiest, fastest website and most impressive branding, logos and photographs straight away. It's easy to get sucked in and waste a lot of time.

  14. Yep, focus on the things that are going to give you tangible returns, and delegate the rest. There's no need to spend your brain power on things that don't move your biz forward.

  15. Yes, unfortunately scamming is widespread and it can be very upsetting to get scammed. But you are right, you need to spend your time where the most opportunity is.

    At the same time you need to keep your eyes open and watch the indicators. These things can get very sophisticated.

    One time I applied for a "job" on Craigslist. It took me a while to figure it out. The guy was a scammer from Nigeria who pretended to be American. He hired several Americans through Craigslist to post ads for him of "vacation property rentals". He just copy-pasted houses from a house sales website. Then he got the applicants to send the money to the people he hired who then had to Western Union it to Nigeria… I managed to get out early, but I still lost $1200 on a chargeback from a victim.

  16. Love the drama at the beginning! But I also love the message even more.

    I bet it’s frustrating when you hear about someone stealing your work but like you said…where is the maximum opportunity? Play cyber Sherlock and find the dude or focus on creating amazing content or a new course.

    I look forward to tomorrow’s video…wondering what instrument you’ll close out with next. 😉

  17. And you did it again! Comedy, drama, and really useful info in just a few minutes of my time. If focusing on maximum opportunity is my key to success I can clearly say that watching your videos will stay on my daily list of important things to do. Every video leaves me with something useful that I may not have thought about before that could actually change my business and life for the better. Thank you!

  18. This is HILARIOUS. Kudos to you and your videographer

  19. I worked a in a clothing store in high school. Every few days we’d have to deal with shoplifters. It was super annoying. And I felt yucky every time it happened. Though these people weren’t stealing directly from me per say, I felt hurt that someone would do such a thing to my place of work. And while my gut reaction was to become suspicious of virtually all customers, it wasn’t worth it. I wasted so much time watching people out of the corner of my eye, notifying security of what I thought to be suspicious behavior, etc. that I was missing opportunities to close sales and otherwise help potential customers.

    Loss prevention is a big deal, but in the online space, as Derek mentioned, it’s ultimately not where you want to focus all your attention. I love the advice to focus on where there’s the most opportunity. The greater opportunity for growth will almost certainly be in generating new sales than trying to salvage sour deals.

  20. It can be so easy to get distracted from the main thing.  I'm working on it, but it isn't easy.  Thanks for the reminder!

    Last year, though, when I was traveling with my family, we had a home base with my father-in-law in Bogotá, Colombia for a few months.  I had a little more time to dabble in my business, so I bought two of your courses, Blog That Converts and Sales Page That Converts.  I'm glad my purchases didn't get flagged!

  21. Thank you for the practical info on how to find the source of fraud purchase. And also collecting buyers' phone numbers. Great idea.

    This is a hard lesson: to let the occasional fraud go by without doing anything. I wonder if the card number used was stolen and the payment went through.

    "Successful people spend their time where they find maximum opportunity." Fraud or no fraud, this cuts to the core of what my daily activity should be!

  22. Ah, that's one of the many challenges of being a beginner as an entrepreneur, isn't it, Derek? All too often, we get so used to doing everything*, that we neglect to do the most *important thing, which is to focus our energies and efforts in the profitable, money-making activities where the opportunities exist! Thanks for keeping the content fun and light-hearted, while still providing valuable reminders like this.

  23. Great teaching moment Derek. Reminds me of Tim Ferriss in his 4-Hour Work Week book that says to make sure that you're spending the majority of your time on income-producing activities. He calls it his 80/20 principle. What's the 20% activity that produces 80% of your income? Focus on that. Or vice versa what's the 80% of stuff you spend your time on that is being wasted that you can flip?

    It's your same concept here. Why spend all that time chasing down one fraudulent transaction when you could spend that time making incredible content and using your gifting!?

    I was prompted to Post a stickynote over my laptop and work area that said "ARE you busy or productive?" To make sure that I'm not just doing things to do them but doing the ones that are the most fruitful😊

    Thanks Derek

  24. I'm just going to be honest, so far, I like the notification gong best. Can't wait to see if this catches on & it's a new bell every time.

    Of course, thanks for all the great information, too…10 days in & still going strong! 👊🏻

  25. I am so glad you mentioned this Derek. I personally use a third party billing system that does all of this for me. In my industry, alot of people get over carried away with the need for advice, and I can't personally babysit all of these people. I just do not have the time to do it. Like you said, it could take a few hours and that could be the loss of significant revenue. Sometimes it is easier to pay other people to do it.

  26. Thanks! For the tough love. 🖤

    Why do you choose not to have a link to your email list in the description box?

  27. Are you posting the video at the same time of day? Or different times of the day?
    Why would I want to get notified for a daily vlog?

  28. Lol really loved this one. It was the best one yet Derek!!!

  29. 80/20 rule. 80% of results come from doing 20% of the most important things if done correctly so I’m glad you touched on that point. Commenting everyday👌🏻 keep up the good work.

  30. I am a great believer in using our energy for positive things and achieving more so agree with what you have said here about not wasting time chasing the crook

  31. That's a hell of a nugget in there. 🙂

  32. I shared your video with my nephew. You remind me of him. How do you like them apples?

  33. Successful people focus on things bringing maximum opportunities. Yes every of your video is Comedy + drama. Great Derek!

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