The fraud industry is growing at an exponential rate and its time you learned how to protect yourself. With the increase threats, the big banks took steps to decrease fraud. They introduced emv chip and pins to fight fraud in brick and mortar stores everywhere. Every country that implemented emv chips and pins saw a huge decrease in fraud in brick and mortar locations. Guess what though? There’s a huge increase in fraud attacking e-commerce stores using online hacked credit card data to manipulate the system to purchase goods.
So today below I’ll be giving you tips on fighting the fraud and to save your cost. Fraudsters are not the smartest but they are deceiving and have potential to destroy web businesses.
Hare are three tips for merchants to fight fraud:
Find the Best Customers
Merchants have tons of problems dealing with fraud like canceling orders of legitimate people. Realistically, just causing a huge inconvenience asking for more information. Lots of sales will be lost because of fraud prevention methods. It is recommended to balance out who you ask for more information. It is important to know that about 0.9% of purchases are fraudulent. This makes it extremely difficult to find fraudsters in action.
What is recommending is instead of manually reviewing all the transactions you should look for good customers. Find out as much info and do lots of research so that they will not have to go through fraud checks. This will provide a great customer experience for the customer and filter out the legitimate, so it is easier to find fraud.
Use Fraud Prevention Tools to filter out the Fraudsters
Merchants sometimes try to do manual fraud checks themselves but will notice how time-consuming it is.
You should know how business works people are out there trying to solve problems. There is tons of fraud prevention tools out there a quick google search could help you out there. Many of these fraud prevention services also have insurance and will eat up the cost of fraudulent transactions.
The main ways fraud prevention tools use to figure out fraud:
Suspicious Cards or Stolen Cards – Most fraud preventions tools cross reference databases to see where the card was used. If the card was used before and was deemed fraudulent on another site maybe the fraud prevention will pick up on it and throw a red flag for a manual review.
IP info gathering and device info gathering (Fingerprinting) – They will check everything that the device info can give off. Things like location, device, billing info, shipping info, phone number, etc. They will do cross referencing with banks and other merchants and figure out if the info is incorrect(like different billing than shipping).
By using fraud protection software to stop potentially fraudulent purchases saves a lot of time and money for the merchants. It gives the customer most of the time a great shopping experience if they’re fraudsters.
Most of the security related problems have the same cause. A hacker gets access to credit card details from the merchants who save the data. They normally have a legitimate reason for saving it like making sure you could easily input your purchase info and cross reference things. What Tokenization does is remove the merchants need to save the customers information on their own servers. By using it on a PCI servers they will handle all transfers of sensitive information on your websites.
In a hacker point of view, a token is worthless to them. But for a merchant and its customers, they have no price tag. Tokenization does a great job reducing the risk for all merchants by removing the need to hold onto credit card data on merchants computers. Becuase of this, it has helped businesses support the security of all online transactions while lowering costs and difficulty of being at the industry standards and following government regulations. The PCI protects consumers and help businesses store credit card data after the transaction.
Final notes about this is if you have problems with fraud and want to find out more you must do your own research. It is recommended to purchase a fraud prevention service with insurance to eat up fraud that occurs. It would save you tons of time and headache dealing with fraudsters.