Popularity can sometimes lead to negative outcomes. It can be destructive at times especially when handling a successful ecommerce store. Ever wonder if the high number of sales could lead to an increase in the amount of fraudulent activities? This article highlights ways to reduce the fraudulent ecommerce behavior.
Criminal activities are gaining momentum in the virtual world like never before. Unlawful crooks are trying to take advantage of companies by completing unwarranted chargebacks or using fraudulent payment techniques. The term fraud doesn’t end here it also ties in with identity theft, and unauthorized use of credit cards for purchases and sales.
Setting up an ecommerce store has become more like a cakewalk these days, but at the same time, organizations need to ensure security measures are in place to sustain business.
The tools and weapons needed
One of the prime steps to reduce the risk of fraud is setting up the correct fraud screening tools within an account. Most payment service providers will offer some basic level of fraud protection. However, there is a plethora of fraud screening tools that range from basic to advance.
- Basic AVS – the system checks the numeric present in the billing address of the card against which the card is registered.
- Advanced – includes the complicated Bespoke tools. These tools mainly work with a third party. They are meant to run background checks on card data supplied by many sources. Chances are if a delivery address has been used in previous fraudulent activities it will be flagged.
Five steps to take to fight against ecommerce fraud
#1 Select a secure ecommerce platform
Nothing is secure, whether online or offline. However, one can get pretty darn close. Select an ecommerce partner who adheres to the PCI security compliances and offers a platform with features such as:
- A safe and secure online checkout
- Enterprise level, layered security
- Encryption for all customer data
- Constant fraud monitoring
- PCI compliance and scans
- Card verification value
- Address verification system
PCI compliance checklist:
#2 Utilize CVV and AVS
Card Verification Value (CVV), the small three-digit code present on the back of a credit card can be configured with advanced technology; and it is very important to select an app or service to do so. In fact, incorporating a third-party app is the best way to prevent fraud from people who have stolen the credit card numbers and not the CVV.
Address Verification System (AVS) is a bit different. Nothing is visible on the frontend of the site, but it definitely safeguards credentials. It checks if the address given in the billing address field matches that of the address on file for the credit card.
#3 Have a backup plan
Although fraud doesn’t typically bother existing content, hacking does. Even with tight security, professional hackers can hamper an existing site and cause great loss. Thus, it becomes very important to have a backup plan in the event a re-launch of the site is needed.
#4 Watch high-risk regions
With ecommerce expanding at a phenomenal rate, several high-risk regions such as Southeast Asia, the Middle East, Africa, Eastern Europe, and Central America are within grasp.
Apart from this, there are times when a purchaser has tried and failed to place multiple orders with an online store. Chances are there they’re attempting ecommerce fraud.
#5 Trust your gut
When in doubt, give your customer a call. Most honest customers will appreciate your diligence. Deploy human as well as digital mechanism in order to monitor every customer activities for fraud tracking. Make sure to analyse the following filters for alert mechanism:
- Many orders from same account using different credit cards
- Email address and IP not matching
- Different billing name and address name
- Fake numbers along with email address
Whether conducting business in the physical or digital world, there’s no substitute for human interaction.
There is no way to detect fraud 100% all the time, but with the help of the aforementioned ways, businesses can definitely protect themselves to the fullest.