In 2018, the highly anticipated “True Cost of Fraud Study for the Retail Sector by LexisNexis® Risk Solutions, was released, revealing the true challenges that fraud is posing for retailers nationwide.
Some of the fastest growing incidents of fraud keep stemming from card-not-present and mCommerce fraud. The 2018 study also demonstrated that losses due to fraud were up 6% from the previous year. For every dollar that was lost to fraud, online merchants were bound to lose $2.94 in revenue because of related fees, merchandise, chargeback costs, lost revenue, and a lot more. mCommerce retailers were not faring any better, they stood to lose $3.29 per dollar.
Merchants Employing Some Fraud Tools, But Not Enough
A troubling trend was also uncovered, and that is since 2012, the number of attempts at fraud each month has soared from 170 to 619. That is an increase of a whopping 400%. What’s even more disturbing is that at least half of these fraudulent attempts will be effective. Therefore, it is absolutely critical that more eCommerce, international, and mCommerce merchants implement some type of fraud solution, an automated alert system or both.
EMB Can Equip You To Fight Back
EMB or emerchantbroker.com has been a leading merchant account provider that has served high risk eCommerce businesses for many years. Some of their high risk clientele has included credit repair companies, adult websites, and e-cigarette vendors, just to name a few. Some of the tips they suggest to increase fraud protection are the following:
- Verify your website’s security: It is important to identify any weak points. For example, ensure that your URLs remain in “https” to ensure a safe transaction during the entire checkout process. You should also consider updating your passwords on a consistent basis. Or you can hire a security expert to really delve in for any weak links.
- Keep PCI Compliant: The Payment Card Industry’s Data Security Standard or PCI DSS are regulations to make sure all merchants keep a safe payment condition. This is a vital step to protect yourself and your clients from fraud. Not complying with these regulations could result in fines and penalties.
- Apply AVS and CVV verification: The Address Verification Standard inspects whether or not the billing address provided by the customer is the same as the billing address saved by the credit card company. If there is discrepancy, it is fraudulent.
The Card Code Verification uses the 3 or 4 number security code found on the back of the credit card to verify that the person making the purchase online actually has possession of the card
- Employ a Fraud Protection Service: Many merchant account providers are including anti-fraud systems to protect merchants against criminals. EMB is proud to offer both Verifi and Ethoca, which work in the background to recognize and predict any patterns of fraud.
Another way that EMB helps you fight fraud is by offering chargeback protection. Since EMB has partnered with Verifi, along with its Cardholder Dispute Resolution Network (CDRN) along with an alert system by Ethoca, the combination creates an effective system. The greatest benefit about the CDRN program is that it works with both card issuers and banks, empowering businesses to resolve credit card disputes directly. This grants merchants the highest incidences of chargeback resolutions.
You Are Not Alone
Although the statistics paint a troubling road of fraud ahead, you don’t have to be distressed. EMB is equipped with the latest fraud and chargeback protection tools, a secure payment gateway, and so much more. The application process is fast and easy. All merchants who are eligible for a merchant account can get approved within 24 to 48 hours. Call or email us today!