Some online security groups around the world claim that fraudsters steal on average $5 from every $100 purchase made in ecommerce platforms worldwide. A few cyber security experts predict over $19 billion of losses for businesses in the USA by 2018 due to card not present scams and other fraudulent ecommerce schemes. So, what can businesses do to fight online business fraud today? Here are some proven tips that work well for the businesses of many ecommerce merchants worldwide:
How Ecommerce Merchants Can Avoid Online Business Fraud Today
- Make sure to implement the latest online security technologies into your ecommerce platform. These include 3D Secure protocols for processing credit card and debit card payments online, AVS (address verification system) technologies for card not present transactions, IP masking detection procedures to ward off cyber criminals that use advanced clean fraud technologies and so on. Don’t forget to test your security protocols with actual transactions, and also closely monitor your initial transactions after going live. These technologies can help prevent online business fraud.
- Test your ecommerce platforms for potential exploits and vulnerabilities. This can be done by seasoned cyber security groups and consultants with experience in exploit and vulnerability testing procedures. This can help you identify weak areas in your ecommerce systems that might be vulnerable to new threats, and discover existing exploits that can penetrate your system and expose it to possible online business fraud.
- Integrate suitable online security protocols into your affiliate management portals and results-tracking processes. Many fraudsters hack into confidential databases through these affiliate management portals. They also exploit cookie-tracking technologies of businesses around the world via existing results-tracking tools.
- Create stricter manual customer identity verification procedures. This can help fight online business fraud, particularly card not present scams and identity theft.
- Stricter affiliate qualifications and requirements can also help ecommerce merchants to avoid online business fraud. Also consider implementing manual affiliate identity verification procedures to strengthen your online security defenses against potential affiliate fraud.
- Monitor the Web for clones of your ecommerce platforms. Fake sites are used by many scammers around the world for perpetuating merchant fraud. The reputation and credibility of your business can be negatively affected by these scams, causing you to lose significant revenues. To fight this type of online business fraud, publish reminders on your website and newsletters about these fake sites and phishing scams.
- Consider offering quick and easy cash only payment methods in your ecommerce platforms. This can help you avoid friendly fraud and card not present scams. However, you should study the potential negative effects this can cause your business before implementing this into your ecommerce portals – Some of your customers won’t probably find your cash only payment options convenient for them.
Follow these tips to avoid online business fraud, and you can save your ecommerce business thousands of dollars in lost revenues. Also feel free to share this with your family and friends, so they can also take the same action for their ecommerce platforms and online businesses.