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Scram, Scam!

If you sell on the Web, know that fraud is part of the e-commerce game. Don't let thieves get the best of you.

By Melissa Campanelli

Opinions expressed by Entrepreneur contributors are their own.

Keith Peer, owner of Central Command Inc., knows all too wellthe risk of doing business on the Web. An online software merchantnear Cleveland, Central Command offers antivirus software toconsumers who have been attacked by hackers, crackers and otheronline scammers. Before Peer set up his Web site back in 1994, hetook several precautions to make it as virus- and fraud-free aspossible. His first step was to choose an e-commerce vendor whosesystem came complete with software to check for fraud.

Peer also did some checking of his own, keeping a close eye ontwo kinds of buying activities that could indicate fraud. Oneindicator was the purchase of multiple licenses without testing thesoftware. (It's common practice for software buyers to downloada free trial version before making a multiple purchase.) Anotherindicator consisted of orders from areas with high incidences offraud, such as Miami, Los Angeles and former Soviet Unioncountries. In both cases, he'd check and recheck credit cardnumbers to ensure they were legitimate.

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