Fraud prevention is a major concern in eCommerce. Every year, numerous small to medium scale businesses are forced to close their operation due to the losses that they incurred from various fraud attacks. This is the reason why all eCommerce businesses are encouraged to employ an effective fraud solution to protect their interest and continue with their operations without too much disruption from any fraudulent schemes.
There are different type of frauds that can affect an eCommerce business. One of the primary types are the ones committed internally. The other types are the ones conducted by third party fraudsters. Either way, a clever fraud solution should be able to help address your concern and keep your company from incurring unnecessary losses. To give you some idea about the different fraud prevention schemes that you can implement, see details below:
Fraud Prevention Tips for eCommerce
- For small businesses, investing in your people’s fraud prevention training can help significantly reduce fraud transaction in your business. This type of fraud solution is applicable only for small volume transactions since your employees will be the ones in charge of manually assessing which transactions may be fraudulent and which ones are legit. Of course, conducting this type of fraud solution for large volume of transaction can be costly and time intensive, which is why only small scale businesses employ this type of fraud protection.
- Consult a fraud expert to help you set up your company’s fraud prevention methods. A fraud expert can help assess your business and recommend which part of your business system requires reinforcement or is vulnerable to fraud attacks. Aside from this, a fraud expert can also evaluate any existing fraud solution you already have, and may even recommend upgrading on areas where it’s necessary. A regular fraud solution assessment should also be a part of your fraud protection plan so you can keep up with the changing times and latest tactics utilized by fraudsters for attacking businesses.
- For eCommerce with large volume of transaction an automated fraud program might be necessary. This automated fraud solution utilizes a huge database system where parameters or rules are set and matched with every business transaction in order to determine which ones are legit and which ones are frauds. Of course, another reason why only large businesses use this type of fraud solution is due to the price. Automated solutions are usually expensive, which is why small businesses tend to shy away from this type of option.
- Implementing internal control such as strict employee policy and business processes help address common internal business fraud. Although these methods cannot entirely eliminate the possibility of internal fraud in your business, it can still help significantly reduce the chance of fraud from occurring.
The details provided above are some of the useful tips that you can utilize when planning and implementing fraud prevention system for your eCommerce business. As the saying goes, prevention is always better than cure. By implementing a reliable fraud prevention plan you are protecting business from having to go through the hassles, losses and business disruption that usually comes with fraudulent schemes.