Fraudsters Can Kiss Their Scams Goodbye: 5 Effective Ways to Prevent E-commerce Fraud
If you own an online homeware and furniture store, chances are you’ve had to deal with the problem of e-commerce fraud at some point or another. Whether it’s someone using a stolen credit card to make a purchase or someone taking advantage of your return policy, fraud can be a costly problem for businesses that sell physical goods online.
And as a business owner, it’s important to be aware of the different types of fraud that can target your website. E-commerce fraud is a growing problem, and homeware and furniture websites are especially vulnerable.
Here are some of the most common types of e-commerce fraud and how you can prevent them.
The most common type of e-commerce fraud is chargeback fraud. This occurs when a customer orders a product from your website and then asks their credit card company to reverse the charges. Chargeback fraud can be costly for businesses, as they not only lose the revenue from the sale but also incur fees from the credit card company. There are a few ways to prevent chargeback fraud, including:
Verifying Shipping Addresses
When you’re running an online business, it’s important to take steps to protect yourself against the growing number of frauds happening. Fortunately, there are many things you can do to reduce your risk. One of the most effective is to verify shipping addresses.
By ensuring that the address on an order matches the one on the customer’s credit card or PayPal account, you can help to prevent thieves from using stolen cards or hijacked accounts to place fraudulent orders. Verifying addresses can also help to ensure that orders are not being placed using false or disposable email addresses. Be sure to always verify that the shipping address provided by the customer matches the one on their credit card statement. You can do this by requiring the customer to enter their billing zip code when they checkout.
In addition, it helps to ensure that orders are going to a valid address. For example, a bone inlay business may want to verify that the shipping address is within the country before accepting an order. Bone inlay is made by hand, and each piece is unique so it’s a shame if it gets to the wrong hands. This can help to prevent fraudsters from using stolen credit cards or other information to place orders and then have them shipped to another country. Always remember that verifying shipping addresses is a simple but important step in preventing e-commerce fraud.
Using AVS Matching
AVS stands for Address Verification Service. This is a service offered by credit card companies that allows you to verify that the customer’s billing information matches the information on their credit card. When you use AVS matching, you can be confident that the customer is who they say they are and that they’re using a valid credit card.
Also, when you use AVS matching, you are essentially comparing the billing address on a credit card to the address that is on file with the credit card company. If there is a mismatch, then you can be pretty sure that the credit card is being used fraudulently. That’s because most thieves don’t have access to their victim’s billing information, so they’re likely to provide an invalid address. By requiring AVS matching, businesses can significantly reduce their chances of being victimized by fraudsters. While AVS matching is not foolproof, it is one of the best tools available for preventing eCommerce fraud.
Monitoring Order Activity
E-commerce fraud is a serious problem that can cost businesses millions of dollars each year. And another effective way to prevent e-commerce fraud is to monitor order activity.
By tracking orders, businesses can quickly identify suspicious activity and take steps to prevent it. For example, if an order is placed from an IP address that has been linked to fraud in the past, the business can flag the order for further review. Order monitoring can also help businesses identify patterns of fraud, such as repeated attempts to use stolen credit card numbers.
Be sure to always monitor your website’s order activity for any suspicious activity. If you see an unusually high number of orders from a single IP address, or orders being placed using multiple credit cards, this could be an indication of fraud. You should also flag any orders being placed for high-ticket items without any prior history of purchase on your website.
Utilizing Emerging Tech
Fraudsters are constantly coming up with new ways to exploit the system and steal money from innocent consumers. This is why it’s so important for businesses to stay one step ahead of fraudsters by utilizing emerging technologies. And one of the innovative ways to prevent e-commerce fraud is to use a fraud profiler.
This is a single platform that will reduce the time spent on processing customer records, by producing a risk score for potential identity fraud. Designed to help you quickly, and efficiently detect identity fraud across multiple records, it bulk process your data, comparing it with thousands of reliable external datasets to minimise the risk surrounding fraud.
It also uses artificial intelligence to analyze customer behaviour and identify patterns that may be indicative of fraud. By catching fraudsters before they can strike, businesses can save themselves a lot of money and hassle. Another way to prevent e-commerce fraud is to use biometric authentication. This is where customers are authenticated based on their physical characteristics, such as their fingerprint or iris scan. This makes it much harder for fraudsters to impersonate someone and steal their information.
By utilizing these emerging technologies, businesses can stay one step ahead of fraudsters and protect their customers from being taken advantage of.
Invest in Your Employees
Finally, it’s important to educate your employees about the importance of preventing fraud. Make sure they understand the potential consequences of fraud, as well as the steps they can take to prevent it. You should also have a policy in place for dealing with suspected fraud.
You can help to keep your business safe by teaching them about the different types of fraud, how to spot it, and what to do if they suspect that someone is trying to commit fraud. Also, regular training can help to keep your employees up-to-date on the latest scams and trends. As a result, they will be better equipped to deal with any potential threats.
Conclusion
E-commerce fraud is a growing problem, but there are steps you can take to protect your business. Chargeback fraud is one of the most common types of these but it can be prevented by verifying shipping addresses, using AVS matching, monitoring order activity, making use of emerging tech, and employee education. By taking these precautions, you can keep your business safe from loss and keep your customers happy.