100% of our fraudulent and ID theft orders in the last year were made using valid (likely stolen) credit card numbers and forwarding addresses. We lost thousands of dollars as the cc company always charges us back and there's nothing we can do. So we're also very cautious about those orders. Remember that whenever there's fraud, it's always the retailer that's left holding the bag - no one loses money except the retailer.
Sure, but I am not talking about shipping to a different address, which happens to be a F&F company. In this case, that freight forwarding address is the billing address of the card - ie, i am shipping the product to the card's billing address. Changing the billing address of a card isnt something that someone can do just by stealing a card number.
Re credit card fraud, here's the thing: counter-intuitively, trying for zero fraud is generally not economically advisable. That is why phone companies, banks, credit card companies, etc never shoot for zero defaults. The reason being, to remove that last 0.5-1-2% of default/fraud cases, you have to screen your customers very, very extensively and that usually means turning away far more "good" customers: the loss in profits outweighs the savings in defaults. For the record, this isnt just something i've read in the field - this is an area i've worked on as a consultant.
There are ways to improve the reliability of the customer without such an extreme method (ask for documentation, etc) - this reduces the default amount with a less severe loss of revenues.
It is funny that I cannot buy a pair of $250 boots from Unionmade, or a pair of $150 jeans from 7ForAllMankind, but i can (and have) happily buy a $8,000 watch from Ashford or Jomashop without any issues. As long as my credit card billing and shipping address matched up, no problems. And in fact, immediately after this, I went ahead and bought a pair of boots from Allen Edmonds - using the same credit card and the same billing address.