Five Ways To Protect Your Business From E-commerce Fraud

Aug 01, 2017

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.

  1. 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
  1. 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.

  1. 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.

  1. 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.

  1. 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.


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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.