Handling a Stripe Payment Attack During Our Product Hunt Launch

November 30, 2024—5 min read

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A couple of days ago, we launched Cap on Product Hunt, confident we were prepared for anything.

Everything would go perfectly, right?

Not quite. Let me share what happened and the mistakes we made along the way.

The Unexpected Surprise

In the midst of the launch frenzy, I glanced at our Stripe dashboard. At first, I thought, "Wow, that's a lot of new subscriptions!". Transactions were pouring in—hundreds within minutes. But my excitement quickly turned to concern.

Upon closer inspection, I realised that thousands of dollars in fraudulent transactions had been blocked in just a few minutes, all originating from the same country. We were under a coordinated payment attack.

I couldn't believe it.

Why Payment Attacks Are a Big Deal

Payment attacks are more than just a nuisance—they can have serious implications:

• Financial Risks: Even if fraudulent transactions are blocked, they can still incur fees. If any slip through, you're on the hook for chargebacks, which can cost up to $15 per dispute.
• Account Standing: High volumes of fraudulent activity can flag your account as high-risk. Payment processors might impose holds, reserve funds, or even terminate your account.
• Operational Disruption: Dealing with an attack diverts time and resources from your core activities—in our case, interacting with our new users during the launch.
• Reputation Damage: Customers may question the security of your platform, affecting trust and long-term loyalty.

According to research by Juniper Research, payment fraud losses are expected to exceed $343 billion globally between 2023-2027. It's a widespread issue that can hit anyone, with fraudsters becoming increasingly sophisticated in their attack methods.

Scrambling for a Solution

With our focus already split, we needed to act fast. Here's what we did:

1. Blocked Transactions from Specific Countries

I noticed all the fraudulent attempts were coming from a single country (PK). Using Stripe's Radar rules, I set up a temporary rule to block transactions originating from that country. This immediately reduced the number of incoming fraudulent attempts.

2. Tightened Stripe Radar Settings

We lowered the risk threshold in Stripe Radar from 75% to 50%. This made our fraud detection more sensitive, catching more suspicious transactions before they could proceed.

3. Implemented Advanced Fraud Detection with Stripe Radar

We dove deeper into Stripe Radar's advanced features:

• Custom Radar Rules: We wrote custom rules to block payments with high-risk signals, such as mismatched billing countries or known fraudulent BINs.
• 3D Secure Enforcement: We enabled mandatory 3D Secure authentication for all high-risk transactions. This adds an extra layer of verification, significantly reducing fraud.
• Real-Time Fraud Insights: We set up real-time alerts for fraudulent activity. This way, we could respond immediately to any suspicious transactions.

4. Added a Vercel Firewall Challenge

To further enhance our security measures, we Vercel Firewall's challenge system into our stack. This powerful tool helps verify legitimate users through an intelligent, customisable challenge mechanism, providing an additional layer of protection for our platform.

Reaching Out for Help

After posting about our situation on X, I was amazed by how many founders reached out sharing their own payment attack stories. It seems this is a more common issue than we thought, especially during high-visibility events like launches.

Community Suggestions

• Implement Captchas: Several people suggested adding captchas to our payment forms to deter bots.
• Monitor Early Fraud Warnings: Setting up webhooks for early fraud warnings helps act quickly.
• Refund Suspicious Payments Immediately: By promptly refunding questionable transactions, you can avoid dispute fees and maintain your account health.
• Contact Stripe Support for Custom Solutions: Some suggested reaching out to Stripe to implement measures like blocking payments after a certain number of failed attempts.

Reflecting on the Chaos

Looking back, we realised that even with strong security measures in place, unexpected attacks can still occur. The key is how quickly and effectively you respond.

What We Learnt

• Stay Vigilant During High-Profile Events Launches can attract unwanted attention. We monitored our systems closely but learnt that real-time adjustments are crucial.

• Leverage All Available Security Tools Platforms like Stripe offer robust features—make sure you're utilising them fully. The advanced settings in Stripe Radar were instrumental in mitigating the attack.

• Community Support Is Invaluable The advice and support we received helped us act swiftly and effectively.

• Security Is an Ongoing Process Threats evolve, and so should your defences. Regularly review and update your security protocols.

Moving Forward

We're taking additional steps to bolster our defences:

• Enforcing 3D Secure and Mandatory CVC Checks Strengthening authentication for all transactions to prevent unauthorised use.
• Integrating Captchas Adding captchas to our payment process to deter bots and automated attacks.
• Regular Security Audits Scheduling periodic reviews of our security settings to stay ahead of potential threats.
• Advanced Monitoring with Stripe Radar Continuously refining our Radar rules and utilising machine learning insights to detect and prevent fraud.

Closing Thoughts

Last night was a wake-up call. It wasn't how we planned to spend our launch night, but it taught us valuable lessons.

To everyone who offered advice and support—thank you. Your insights made a tough situation manageable.

If you're running a business or planning a launch, take our experience as a reminder: even when you think you're prepared, there's always more you can do to protect yourself and your customers.

Cheers,

Richie McIlroy — Founder of Cap