Since the pandemic outbreak, there has been a resurgence in online shopping and a simultaneous increase in fraudsters. No matter the number of customer engagement on your website, these scammers have a keen eye on websites that involve monetary transactions. The e-commerce fraudsters are coming up with new tactics frequently to find new ways to commit fraud.
So to ensure that your site is under complete surveillance, it’s best to follow the fraud management solution that’s put up in this post to secure your assets now!
E-commerce Fraud: An Overview
It is a branch of online fraud committed on e-commerce platforms wherein fund transactions take place. The fraudsters appear in the form of false identity, affiliate fraud advertising, and use fake or stolen credit cards. Also, persecutions of fraud are often rare because of resource and time constraints, gathering evidence, and other related issues. That’s why implementing high-quality fraud prevention and detection management systems is best to eradicate fraud and reduce revenue impact on your platform.
Time Tested Fraud Management Solutions:
- Have a frequent software update
Your payment gateway and website software needs regular updates for security enhancement and the inclusion of the latest features. This prevents privacy vulnerabilities, confidential information leaks, and compromised software.
- Scrutinize red flag orders manually
E-commerce websites have an inbuilt red flag to raise risky orders. In case it’s present in a customer profile, ensure to check for further information to check its authenticity. Also, note if you have purchases made by unusual IP locations to ensure that scammers dont use a credit card from a different location to make massive purchases from your website.
- Reduce the order purchase quantity
Set limits on your number of purchases to reduce the risk of fraud and chargebacks. Scammers usually purchase high-order quantities using stolen credit cards to create fraudulent purchases, and it’s best to analyze previous sales data and block orders that exceed the maximum volume.
- Enforce typing in the CVV for every purchase
The card verification value (CVV) is a three- or four-digit number printed on the rear side of the card. It verifies the physical possession of the card with the customer.
Enforcing this strategy dramatically reduces scammers’ chances to use stolen debit and credit cards on your website since they mostly have credentials to the card number, not the CVV. Also, you can opt for some visa prepaid solutions for extra website transaction security.
- Double-check the delivery
Yet another strategy is to verify the customer’s identity by asking for proof of delivery. This can be in the form of a signature upon delivery or a photo of the parcel at the destination. These measures help ward off scammers using chargeback schemes or identity thefts and protect your company from harm from scammers insisting the package was not delivered.
- Install a fraud prevention software
This is the best, non-time-consuming effective fraud management solution to fight all e-commerce fraud types. It is a third-party solution that detects red flag transactions and safeguards against card testing, friendly, and chargeback fraud. Also, it notifies you of suspicious purchase action that requires your attention.
- Be extra careful on vacations and holidays
The months that have extra holidays are critical for your business as people flood the e-commerce stores. And most businesses mostly care little about safety precautions. But, unfortunately, it’s the jackpot days for fraudsters who rely on these preoccupied and too-busy merchants who don’t possess any visa prepaid solutions. So it’s best to be careful when you notice rush orders, foreign orders, or small order purchases. These are behaviors of card testing fraud.
- Impute customer knowledge
Remember to educate your customers about these fraudsters. It includes;
- How to prevent fraud?
- How to identify a scam?
- What to do in case of a scam?
These can be infused into the checkout process as tips, FAQs, and guidelines on protecting themselves while using your website for fraud prevention and online security. Finally, implementing responsive, helpful, and informative customer service can help customers with queries or concerns about fraud deterrence.
- Implement an unbreakable user account password
Ensure to ask your customers to provide strong passwords to retaliate the attacks from bots or guesses of scammers. Having a password 10 characters long, including an uppercase letter, number, and symbol, is adequately safe.
- Invest in a PCI compliance
PCI, or the Payment Card Industry (PCI), has set security standards to process, stock, and transfer credit card information. It helps to reduce fraud risks and protect sensitive customer information via regular security assessments to address and identify vulnerabilities in a business’ security system.
● Invest in machine and AI learning
By retrieving past data and evidence, this technology helps determine whether to accept or reject a transaction. So as more data gets incorporated, the more intelligent and accurate the decision-making process becomes.
Conclusion
Hopefully, this post might be an informative read for you. Follow the fraud management solution mentioned above to overcome the complex world of e-commerce fraud.
For more informational content, visit Recifest and get updated.
