5 Tips for E-Commerce Fraud Prevention
Preventing fraud is something that both the user and service provider can work to accomplish through due diligence and proper education. As an e-commerce business, you want as many real orders and as few fradulent ones as possible making their way into your system. Furthermore, you want your customers to have the best experience possible without having to worry about someone taking advantage of them.
The following are five tips to help you prevent fraud on your e-commerce website:
1. Address verification service (AVS) – A service such as this will automate the process of verifying that the address a customer provides matches the address information provided by the credit card issuing bank.
2. Fraud prevention software – Many security companies offer fraud prevention tools that can detect malware-driven transactions, phishing attacks, and many other types of criminal activities.
3. Require CVC2 and CVV2 verification – With standard credit card transactions, you should require customers to enter the 3-digit security code on the back of the card in addition to the card’s expiration date. This is an extra precaution, since there is a lower likelihood that a cyber criminal who has managed to steal the number will also have that 3-digit code.
4. Note country of origin – If you primarily do business in the UK, for example, you should be more cautious of orders originating from other countries. This may be a sign of fraud, especially if the customer IP address comes from a foreign country while the payment details indicate a local residence.
5. Always verify – If there are any discrepancies or issues, always contact the customer directly. In most cases, cyber criminals will not be so bold as to actually respond to direct contact, and if they do, you can often catch them in their lies.
Fraud prevention must be a combination of good technology, such as automated verification systems, as well as good business security practices. You can also educate your customers to be safe when shopping online, and with a combination of these tips, you should be able to minimize fraud on your e-commerce website.