If you run an online business, there is a not insignificant chance that you could become a victim of fraud sometime in the future, if you haven’t already. Fraud costs eCommerce companies billions of dollars every year, with 0.8 percent of all orders proving to be fraudulent in some way.
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This might not seem like an awful lot, but if your company is particularly open to abuse, you could see a fair amount of your hard earned money lost to fraudsters, and that means that you need to do everything you can to tackle online fraud and stop it from bringing your business down. Here are Some Simple Things You Can do to
Prevent Your Online Business from Being Defrauded Today – Tackling Fraud
#1) Create Anti-Fraud Notices
You might not think that displaying anti-fraud notices on your website will do much to deter fraudsters looking to make a quick buck, but you’d be surprised.
More scammers than you might think will leave your site and look for an easier target if you let them know that you’re tracking them and you will pursue any acts of fraud they commit legally.
#2) Scrutinize Orders
I know it’s a pain, especially if you have a lot of orders coming your way, but it pays to carefully scrutinize any orders that come in, especially if they raise your suspicions in any way.
If, for example, a particular customer orders multiples of the same expensive product, or lots of products in a vast array of sizes, a scam could be afoot.
There might also be a problem if shipping information and billing information doesn’t match, so take the time to do a few extra checks.
#3) Use Verification Services
If you receive an order where the shipping and billing information is different one thing you can do to check the transaction out is to carry out a more thorough check using an API for identity verification or by using an address verification service.
You could also get in touch with the customer to check that everything is legit before you send.
#4) Get the CVC2 and CVV2 Numbers
You should always ask for the customer to provide the CVC2 and CVV2 numbers that appear on the back of credit and debit cards, along with the card’s expiry number to ensure that the person using the card number is actually in possession of the cards.
It won’t cut the risk completely, but it will make it less likely that you’re dealing with a fraudulent transaction.
#5) Be Wary of Overseas Orders
You shouldn’t stop offering overseas shipping if it’s lucrative for your business, but you should be more wary of such orders because a great deal of online ecommerce frauds are perpetrated outside of the United States, and that means you’ll have to be extra careful when authenticating an order.
#6) Make Use of Fraud Prevention Blacklists
Fraud prevention blacklists are databases which contain the information of mailing addresses that have been fraudulently used to make chargebacks or otherwise steal goods and services.
If you cross reference all of your orders with them, you should be able to better weed out the fraudsters and protect your business.
#7) Try Fraud Prevention Software
There are numerous pieces of fraud prevention software which can be used by online merchants to check orders automatically for signs of fraud when they are placed. In addition, getting a copy of your tc40 data can help with your chargeback management.
You can even get such services free from the likes of MasterCard and Visa, and they are great at stopping scammers using stolen credit cards, in their tracks.
#8) Maintain Accurate Records
It’s never a bad idea. If you want to prevent your online business from falling victim to fraud, to keep meticulous records of every interaction you have with every customer. Save emails, record and save calls and keep details of their addresses and phone numbers on file, along with details of shipping information.
Then, if they try to make a chargeback or accuse you of not sending their goods, for example, you have the tools you need to fight back.
#9) Speak to the Customer
If you’re suspicious of a customer, perhaps the best thing you can do is give them a call or send them an email.
You should be able to get a better feel for them by asking them a few simple questions about their purchase, and if you’re still not happy, you can then cancel the transaction.
If you aren’t able to implement all of the above right now, putting just a couple of these measures in place should see your online business become safer and less attractive to scammers.
Do what you can, when you can, and your business won’t be felled by fraud.