Practices to Ecommerce Fraud PreventionSubhash Kashyap
A lot of companies are trying to escape and survive in the online space, and what’s more, a lot of them are trying the eCommerce approach for the first time.
Of course, online trading is full of benefits, but there are also pitfalls that a business that has previously worked offline has not yet encountered.
Yes, we’re talking about e-commerce fraud and scams. One of the first things you need to do is protect your business and clients from intruders.
In this article, we have collected eCommerce fraud prevention best practices to help your company stay safe.
What Are The Risks and Frauds Which Happen Online?
Such as upgraded card skimmers, to pervasive legacy threats like counterfeiting and check scams.” So, there are the following eCommerce fraud types.
Typically, attackers also use phishing and password guessing techniques to increase the chances of a successful attempt.
And, collects a large number of orders to steals personal and payment data in order to make a purchase in a legitimate store.
Thus, the deceived customer pays twice – for the goods allegedly bought in a fake store, and for the real goods, but he does not receive any of them.
They track orders made in a real store, contact buyers, and ask them to change the delivery address in order to take possession of the goods before the buyer.
Card Testing Fraud
They target faulty transactions when, for example, a customer accidentally entered the wrong card expiration date.
In this case, with the help of bots, they guess the correct date and can use the complete financial data for their own purposes.
Account Takeover Fraud
Further, this data is used for purchases until the card limit is reached.
Fraud via Identity Theft
As, it has become extremely easy to collect all the necessary information about the user from free sources.
Plus, if the user doesn’t care about the security of their data and doesn’t follow the rules of behavior on the Internet, then stealing his identity becomes an even easier task.
Having this information, attackers can easily answer secret questions, enter the number, expiration date, and СVV щof the credit/debit cards, and even intercept SMS messages.
As you know, the opportunity for a chargeback is a customer protection mechanism, and very often it is overused.
In most cases, the customer receives his money back but the good is not always returned to the retailer.
What’s more, chargeback fraud sometimes happens unintentionally – that is, the customer doesn’t have a real goal to deceive the retailer.
Sometimes, there are real issues (for example, if the good was lost during delivery), however, the financial losses of merchants are real as well.
How Can Ecommerce Fraud Be Prevented?
Here is what you may do to protect your store and customers.
Use eCommerce Fraud Prevention Tools
Credit card fraud detection using Machine Learning is one of the later examples.
Combine Artificial and Human Intelligence
Use Verification Technologies
Use Email Authentication Services
Thus, this is the way to prevent fishing.
Improve Your Service to Reduce Chargebacks
Try to make it clearer for your customers to reduce the chargeback issues because of this factor.
What Are Ecommerce Fraud Prevention Best Practices?
Address Verification System
However, sometimes the change of address may be quite legitimate, and in this case, it makes sense to utilize eCommerce fraud prevention tools for additional protection.
Preventing Phishing Attacks
Check The CVV
To protect it, you may come up with the system that will block the transaction if the CVV is entered wrong two times.
Ensure PCI Compliance
Business-Specific Risk Modeling With AI and ML
What is more, the opportunities for ML and IA usage for business are almost unlimited.
And, credit card fraud detection using machine learning is not the only way to secure your transactions and your store as a whole.
Chargeback Reasons Analysis
For example, a sophisticated machine learning for fraud detection system may analyze user behavior patterns.
And, conclude on the chargeback intentions right on the order placement stage.
How is eCommerce Fraud Detected With AI and ML?
How to Protect Yourself From Internet Fraud?
As, it would be impossible to get hold of user data if the user did not share it with the online business website or stores.
The following infographic contains the basic rules you must follow for your online safety.
Conclusion: Ecommerce Fraud Prevention
This problem becomes especially urgent during the pandemic when many businesses have moved online with the intention of staying here.
Security technologies are evolving in response to new fraudulent schemes.
And, today your task as an online business owner is to protect your company and customers from the schemes that we already know.