Running an e-commerce store has a number of advantages but it also comes with some risk. The most common examples of ecommerce fraud include hacking and fraudulent payments.
E-commerce fraud costs business owners billions of dollars each year. However, the good news is that there are measures that you can take to avoid being a victim.
As an online entrepreneur, you should the take time to learn the different risks facing e-commerce businesses and then find ways to stay safe. This article highlights some tips that you can implement to ensure that you are not a victim of fraudsters and hackers.
Payment Card Industry (PCI) Compliance
This is a set of standards that will ensure that you and your shoppers are protected from fraud. It offers guidelines for assessing security risks, security awareness, mobile payments, service providers and ransom ware among others.
Top E-commerce platforms require PCI compliance when you register your store with them. Also, if you fail to comply, you may face huge fines. Therefore, visit the PCIcomplianceguide.org website, read the guidelines thoroughly and ensure that you comply.
Address Verification System (AVS)
This is a system used to prevent credit card theft. It compares the billing address provided by the customer to the credit card address held by the credit card company. However, note that when a person is buying a gift, the addresses may differ.
Therefore, you should not consider every differing address as a fraud. Rather, look into the case further to avoid offending a genuine customer with differing addresses.
Card Verification Value (CVV)
CVV helps in elimination fraud when the fraudster doesn’t have the physical credit card. It includes the three or four digit code printed on the back of the card. Therefore, when choosing a payment processor, look for one that includes CVV as part of the checkout.
Update Your Software And Get Fraud Prevention Software
Updating your software helps in reducing vulnerabilities. Also, take advantage of fraud prevention programs offered by payment platforms. And finally, invest in strong anti-malware and anti-virus software.
3-D secure is a security measure where a cardholder assigns a username and password to their card. This is a measure that protects both the customer and the business owner.
For the customer, it will be hard for anyone to use the card unless they are given the username and password. For the business owner, you minimize cases of card fraud and enjoy a liability shift in case of credit card schemes.
Check Orders Well To Avoid Ecommerce Fraud
Most times, orders placed with stolen cards are very suspicious. Some of the signs that can tell you that a customer is not legit include a huge order for expensive items, customers asking for swift shipping, change of shipping address after payment and customers placing a large order without inquiring more about the nature of the products. If you notice anything suspicious, take your time to verify the details provided by the customer before shipping.
Though the potential risk of ecommerce fraud is high, this should not deter you from running your business. Rather invest in the right tools, software and practices to prevent the risk of being attacked. Finally, keep all the customer and transaction details safe and backed up as this will act as your evidence if something goes wrong.