According to American Express, 60 percent of internet-based retailers reported experiencing some form of fraud in 2016; a 25 percent jump from the previous year’s records. With the threat growing at such an alarming rate, the need to protect your business has never been more pressing.
Here are five ways to keep your online enterprise from becoming an easy target for fraud.
- Recognize signs of fraud
Knowing the red flags to watch out for will help you to make the precautions necessary in combating e-commerce fraud. Some common indications of fraudulent activity include:
- Unusually large or high-priced orders
- A sudden influx of orders
- Expedited shipping on large or high-priced orders
- Orders where the buyer refuses delivery services
- Fake phone numbers or email addresses, especially those that seem like randomly generated combinations of letters and numbers
- Inconsistent physical address information, such as zip code not matching the indicated city or state
- Check your website’s security
Carefully evaluate your site to identify any vulnerabilities. For instance, check to see if all your URLs stay in “https” to guarantee safety during the checkout process. You can also leave the checkout area and return after a few minutes and see if the site maintains “https” URLs.
Also, update passwords on a regular basis. And if you’re still uncertain, hire a security expert to look for weaknesses and advise accordingly.
- Maintain PCI compliance
The Payment Card Industry’s Data Security Standard, or PCI DSS, is a set of regulations designed to ensure that all online merchants maintain a secure payment processing environment. PCI compliance is a crucial step to protecting your business and your customers from e-commerce fraud. In fact, failing to comply could result in hefty fines and penalties, particularly if someone hacks your website as a result of noncompliance.
- Use AVS and CVV verification
The Address Verification Standard checks whether the billing address entered by the customer is the same as the billing address on file with the credit card company. If the two numbers differ, the transaction is likely fraudulent.
On the other hand, the Card Code Verification uses the 3- or 4-digit security code printed on the back of a credit card to verify if the buyer making an order online is in physical possession of the card. This number is not printed on receipts and is, therefore, a big help in keeping your clients’ credit card information safe.
- Use a fraud protection service
In response to the prevalence of online fraud, many payment service providers are now offering anti-fraud systems that act as extra layers of protection against fraudsters. EMB, for instance, will equip your e-commerce merchant account with Verifi and Ethoca utilities, both which work behind the scenes to identify and predict patterns of fraud and protect your business from even the latest techniques.