Online commerce has been growing steadily in the past years. Ecommerce is providing major benefits and advantages for merchants. As for consumers, they get the opportunity to enjoy a high level of comfort when making purchases anytime, anywhere. Fraudsters and scammers also try to benefit from the situation and make more money.
Chip-based EMV cards create more difficulty for fraudsters regarding in-person fraud, so they target Card-Not-Present (CNP) fraud. As a result, the growth of online retail has brought about increased online fraud. Each year, companies lose billions of dollars and face lots of trouble and frustration.
With this in mind, it is highly important for merchants to apply to a reputable payment processor like EMB for a merchant account. With EMB, you can enjoy secure and reliable payment processing. EMB is voted the #1 high risk processor in the US and has an A+ rating with the BBB. EMB is one of Inc 500’s Fastest Growing Companies and is rated “A” by Card Payment Options.
Below you can find what measures online merchants and e-retailers can take to better protect their businesses.
- Use Multiple Methods
Try different ways of evaluating and verifying transactions. There exist various fraud prevention tools such as PCI-DSS-compliant tools like Web Application Firewalls, 3D secure payments like MasterCard SecureCode and Verified by Visa, multi-factor and device authentication, and one-time tokens to be used for an associated mobile device.
- Collect Data and Make Analysis
Extra security and anti-fraud measures will protect your business against malicious users, but will also create frustration for those customers who are honest. So make sure to raise the additional authentication and verification steps only when you discover real alarming behavior. For this, you can use a data collection and analysis program that can effectively detect any abnormal behavior and react accordingly.
- Segment Your Data
No universal tactic can be applied to detect fraudulent transactions. You should evaluate and verify every payment in the context in which it’s being processed. The segmentation of your data and risk factors across different verticals is an effective strategy to try. It can be applied to both product categories and geographical locations, device types and payment methods, as well as user demographics.
E-retailers will continue to face problems created by online fraud. However, risks can be minimized if you use the right tools. Be proactive to keep data under control and detect fraudulent transactions to reduce damage to your business.