Protecting Your eCommerce Business from Fraud: A Merchant’s Guide

1. Protecting Your eCommerce Business from Fraud: A Merchant’s Guide

2. With the help of shifting customer tastes and the effects of COVID-19, the e-commerce industry has become the most important in the global economy. Unfortunately, as the popularity of buying online has grown, so has the number of scams. It’s impossible to run a successful business in the modern era without investing in reliable merchant fraud prevention software. Why Is eCommerce Fraud Rising? Some progress has been made in these areas of cybersecurity and fraud detection over the past year, but the growth of online commerce over the same time period has outpaced these advancements by a factor of 209%. According to estimates, businesses lose 7.5% of their annual income to fraud. Digital Commerce Fraud: Spotting Emerging Patterns Workplace Email Hacked Companies that often employ wire transfers to pay their overseas suppliers and partners are particularly vulnerable to this type of fraud. Scammers target victims by hacking their email accounts in an effort to gain access to their personal and financial information. Security Breach A “databreach” is the unintended disclosure of private information that can harm anyone from an individual to an entire organization. A pre existing database is the most common target for data theft or duplication.

3. Malware It’s a type of malware that can infiltrate a system or network without the user’s knowledge and cause catastrophic failure. Ransomware Malware like this exploits the gaps in security, both technological and human, within an organization in order to steal confidential data or damage essential systems. Paying a criminal a sum of money in exchange for regaining access to data that has been stolen or compromised is known as a ransom. Crucial Measures to Prevent Online Fraud Take Advantage of AI and Machine Learning Online fraud detection and prevention that relies purely on human judgment is challenging. Artificial intelligence can prevent fraud by accurately imitating the work of a human fraud analyst. A human can’t keep up with how quickly and flexibly this system evaluates the customer’s value against the risk of fraud. Apply A Risk-Based Strategy To Authentication Customers’ accounts should be password-protected as a preventative measure against fraud. Making a password more complicated increases the difficulty with which an account can be customer’s

4. Use a Service to Verify The Address In order to conceal their identity, a fraudster could make up any number of false addresses to deliver items to. It’s a shrewd marketing move to use an AVS to win over skeptical consumers. Multiple credit card firms provide a service called address verification services (AVS). The user’s address is checked against the bank’s records using this service. A unique AVS code is then assigned to the store or company. AVS codes can be used to find inconsistencies in ZIP code data, such as wrongly spelled street addresses or improperly formatted apartment numbers. It costs money every time a credit card is authorized by a company that doesn’t directly handle the transaction. With the aim of lowering fraud risk, AVS can help organizations decide whether to approve, refuse, or flag transactions. A Reliable Payment Gateway Service Must Be Chosen One of the simplest and most secure ways to keep your eCommerce business running smoothly is to use a third-party payment platform to check for fraudulent activity. Third-party payment systems handle refunds and customer data storage. It is crucial to keep private any information related to a customer’s credit card. Consequently, the number of times fraudsters attempt to exploit a certain online store decreases when the store makes use of a third-party payment service.

5. Never Forget PCI Standards The Payment Card Industry has set recommendations to help businesses and customers avoid becoming victims of online fraud. Large payment processors typically use PCI-compliant methods. However, before settling on a single payment processor, businesses should do their research. Continuously Verify Your Anti-Fraud Program’s Accuracy You must have access to a cutting-edge anti-fraud solution if your company often uses online payment systems. Modern anti-fraud systems need to be adaptable enough to counteract the various methods that con artists use. However, if you are still using outdated software, you may be putting your company at risk from new types of fraud. To Conclude eCommerce fraud is a common issue that all businesses should take seriously. By taking proper precautions and prevention methods, you can protect your business from fraudulent orders. If you are ever suspicious of an order, do not hesitate to reach out to the customer for more information before shipping the product. When in doubt, it is always better to err on the side of caution to avoid any losses down the road.

6. Source URL: https://microsoft4me.com/protecting-your- ecommerce-business-from-fraud-a-merchants- guide/