How to Prevent eCommerce Fraud

Online fraud has become a major problem for e-commerce merchants. Stolen credit cards, identity theft, chargeback fraud, fake online storefront, or dubious transactions are the biggest concerns in many online stores.

Unauthorized purchases and suspicious transactions can be dangerous for online retailers and legitimate customers so it’s crucial to implement fraud prevention software for e-commerce.

Let’s check how to do it!

Protect your business: Top strategies to prevent e-commerce fraud

Sadly, over 86% of organizations have been victims of cyber attacks.

And the risk of attack or fraud increases when money is involved. It’s important to take proactive steps to protect against it.

Here are some top strategies to prevent e-commerce/payment fraud:

  • Use fraud protection software to identify and prevent credit card fraud, triangulation fraud, and other types of e-commerce fraud.
  • Protect customer data by using secure payment gateways that encrypt all sensitive data (e.g., billing address) during transactions.
  • Watch out for friendly fraud, where customers claim that they didn’t make a purchase but actually did.
  • Use manual review processes to check for fraudulent purchases, such as orders from the same IP address.
  • Protect against affiliate fraud by carefully monitoring affiliate programs and tracking all traffic sources.
  • Implement account takeover fraud prevention measures, such as multi-factor authentication, address verification service and strong passwords.
  • Respond quickly to any signs of fraud risk and work with the issuing bank to resolve any problems.

The above list includes the most popular types of ecommerce fraud, but the threat level is constantly increasing. Any online store should be prepared to protect their legitimate customers and prevent fraud.

Ecommerce fraud prevention tools for online merchants

Ecommerce fraud detection software helps to protect customer accounts and identify fraudulent transactions. One crucial tool is Card Verification Value (CVV), which requires customers to enter a three-digit card security code of their credit or debit cards when making a payment.

Furthermore, monitoring all transactions for high-risk activities, such as multiple purchases from the same IP address, is also recommended.

By implementing these tools, an e-commerce store can reduce the risk of fraud and protect its reputation and financial security. All you need is the right tools and anti-fraud software.

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