How can you avoid online fraud? There are numerous options, but some are better than others. If you want to master how to avoid online fraud then here are some of the top choices:
- Require the card’s security code
This is the 3 or 4-digit code that’s printed on the back of the credit card. It’s not stored on the magnetic strip. This means that it can’t be entered unless the person has the physical card. There are different names for different cards. What’s most important is that you consider requiring it for credit card transactions.
- Keep a running log of credit card numbers
This is updated when your customers enter a credit card number. In the case that the customer tries this 5+ times it’s much more likely to be a fraudulent transaction. It’s common for credit card processors to give you the option to review a day’s batch transactions. This is helpful to learn how to avoid online fraud.
Another issue is when one customer tried to do several transactions with multiple cards. This is another red flag since there’s a chance the “customer” is trying to complete several unauthorized transactions at one time. Using this method can improve your company’s goal in how to avoid online fraud.
- Reduce maximum declined transactions
This is yet another effective method for how to avoid online fraud. When scammers attempt to make fraudulent transactions sometimes they use a malware script that attempts multiple credit card numbers at one time. One of the problems is that your company might be required to pay a fee for each and every transaction.
A helpful solution is to limit how many times a user can enter a wrong credit card number. After they pass that number, they should be banned after they go past the maximum number of transaction attempts.
- Pick a fraud profiling service
This is another effective method if you want to take effective steps to avoid fraud. There are various platforms you can select from. What are they all about? A fraud profiling services do cross-reference of names, past purchases, IP addresses, and other types of data.
It’s an effective way if you want to reduce your company’s occurrences of fraud. What’s most important is to figure out the particular features you’re looking for. That will help you to find the right service for your needs. One of the most important features for how to avoid online fraud is to research per-purchase behaviors. This allows the companies to provide you with a better assessment based on each transaction.
There are some services that also work with the company’s in-house software. This is a plus as you can get the two bundled instead of spending more money to purchase both of them separately. The problem with that option is that it could result in you spend more money than you probably should. That could be a problem if your company is one a shoestring budget.
If you want to figure out how to avoid online fraud here are some of the best tips to consider.