The fraud industry is growing at an exponential rate. According to the Telegraph, online fraud and cyber-crime saw almost 6 million offenses last year. Safe online shopping has a direct correlation with the reputation of your eCommerce store – it’s never too early to learn more about eCommerce fraud prevention and protect your online business.
With the increased threats, the big banks took steps to decrease fraud. They introduced EMV chip and pins to fight fraud in brick and mortar stores all over the world. Every country that implemented EMV saw a huge decrease in fraud in physical stores. Guess what though? There’s a huge increase in fraud attacks of eCommerce stores when online hacked credit card data is used to manipulate the system to complete a purchase.
In this article, you’ll find pieces of advice on fraud prevention in eCommerce. Let’s have an insight.
3 tips for merchants to fight eCommerce fraud
Loyal Customers as Your Customer Base
Merchants have tons of problems dealing with fraud like canceling orders of legitimate people. Realistically, it causes even more inconvenience to ask 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 as about 0.9% of purchases are fraudulent. This makes it extremely difficult to find fraudsters in action.
What is recommending is to deal with reliable customers instead of manually reviewing all the transactions. Introduce personalization, find out as much info about your shoppers and do a profound research so that they aren’t forced into going through the fraud checks. This will provide a great customer experience for the customer and filter out the legitimate ones, so it is easier to find fraud.
Fraud Prevention Tools
Merchants sometimes try to do manual fraud checks themselves but will notice how time-consuming it is.
You should have a deep knowledge of all the processes of business operation. There are tons of innovative fraud prevention tools out there, such as machine learning, automated workflow, insights dashboard, chargeback guarantee, customization, etc. Do your homework and find what better compliments your business requirements. Many of these fraud prevention services also have insurance and will eat up the cost of fraudulent transactions.
Prevention tools use the following strategies 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, the fraud prevention might detect it and throw a red flag for a manual review.
IP info gathering and device info gathering – fingerprinting. Things like location, device, billing info, shipping info, phone number, etc. can be checked. Fraud prevention tools will do cross-referencing with banks and other merchants and figure out if the info is incorrect (for instance, based on different billing and shipping addresses).
By using fraud protection software to stop potentially fraudulent purchases, you can save a lot of time and money for the merchants. This will also ensure a great shopping experience for legitimate customers.
Most of the security-related problems have the same cause. A hacker gets access to the credit card details from the merchants who saved the data. What Tokenization does is removes the merchants’ need to save the customers’ information on their own servers. By using it on PCI servers they handle all the transfers of sensitive information on your websites.
From the hacker point of view, a token is worthless to them. But for a merchant and its customers, they are invaluable. Tokenization does a great job reducing the risks for all the merchants by removing the need to hold onto credit card data on your computers. Tokenization has helped businesses ensure the security of all the online transactions as well as lowers the cost and difficulty of keeping up with the industry standards and following government regulations. PCI protects consumers and helps businesses store credit card data after the transaction.
If your eCommerce business has already faced eCommerce fraud, it’s high time to do your own research and figure out what suits your business needs the best. It is recommended to purchase a fraud prevention service with insurance to eat up fraud that occurs. It will surely save you tons of time and headache dealing with fraudsters.