How to prevent Ecommerce Payment Fraud

With the ongoing development in technology, there is no doubt that there are some disadvantages to the growing hold of tech as well. According to the Association of Certified Fraud Examiners, about 50% of small businesses these days are falling prey to fraud cases at one point. Aside from issues such as hacking and phishing, in case someone accepts a fraud payment, they will be held responsible for the financial loss. Thankfully, to deal with these problems there are certain steps that businesses can take to protect and minimize the risk.

Tips for Prevention of E-commerce Payment Fraud

Below are some points which may help you in preventing e-commerce fraud.

  • PCI Compliance is one of the most important things that e-commerce stores need to focus on. Make sure your online store is PCI compliant and also the environment where it is hosted.
  • The AVS or Address Verification System for identity proof is also another one of the way to prevent fraud cases online. With address verification, there will be proof of the person making the purchase and hence action can be taken if fraud occurs.
  • CCV or the Card verification value requirement. Make sure you ask the purchaser to enter CCV, this is another layer of verification that can prevent purchases from stolen credit card numbers.
  • Proper risk management by ensuring the safe positioning of processes and tools which will, in turn, reduce all the chances for a cyber e-commerce attack.
  • Don’t ignore software updates. Software and platform updates with the latest technology. If done at the right time, it can help prevent fraud.
  • Keeping records for all the attempts of fraud that were made earlier such as IP address, email, and some other details, and taking steps to either blacklist IP so they can’t access your site, etc.
  • Be alert even after the transaction gets approved. It might be fraudulent even then. Use a third-party verification system like SignifyD.
  • Monitoring of transactions and regular reconciliation of bank accounts to check whether there are any unusual activities or not.
  • Keeping limits or certain constraints on the value that would be accepted by a particular account in a single day.
  • Look for some red flags. Sometimes the purchases can be fraudulent as well and these can be some other red flags. People must learn to identify such red flags which will help in the further detection of threats. Inconsistent shipping or billing information and inconsistent spending methods are some of the most common examples of red flags. Have some automated alerts set up in your system that would automatically detect such red flags and notify you.

Please know that e-commerce fraud threats are real and happen every day. Is your business armed with all processes and systems? If not, make sure to work on it on a priority basis, and take the help of experienced professionals who can help you navigate this complex path.