Credit card fraud results in losses worth millions of
dollars annually for online businesses across the globe. Cyber criminals these
days have devised a number of methods to scam companies and customers. Here are
tips to help you prevent the possibility of credit card fraud.
Regularly Update your Shopping Cart Software
Fraudsters are always looking to find loopholes in your
security system and if you give them enough time, they will eventually manage
to find one that could prove costly to your business. Hence make it a point to
regularly update your shopping cart software. This strengthens the firewalls
already put in place and also ensures that your online site is fully compliant
with the payment processing industry’s security safeguards.
Compare IP and Credit Card Address
Certain credit card fraud involves the use of false delivery
addresses. The IP address from where the order was made would be originating
from a different place when compared to the address mentioned on the credit
card. While this is not a certainty for credit card fraud, it would be
advisable to keep an eye on the issue. However you should also note that many
customers like to order products as gifts for loved ones.
Use Fraud Detection Services
E-commerce platforms can use the help of fraud detection
services like ESurksha, Fraud.net and Actimize to help avoid credit card fraud.
You would be required to pay a monthly fee for using these services but the
advantage here being is that you could end up saving a lot more by cutting down
on the instances of chargebacks your business is likely to incur.
Focus on Suspicious E-mail Ids
Fraudsters are often known to indulge in credit card fraud
by using a number of e-mail ids. If you find a customer using an email id like jk3454678@yahoo.com, you should try and
track their spending habits on your site. It is also a good idea to keep a cap
on the number of declined payments that can occur on your interface. It is
natural for customers to fill out the wrong details which leads to a botched
payment every once in a while. But if this is going to occur frequently with
certain customers, it could end up being a classic case of credit card fraud.
Maintain a log of customers who have had multiple declined transactions and
investigate the issue.
Ask for Security Code
In a bid to make payment processes quicker, many e-commerce
companies have resorted to asking very little information about the purchaser’s
identity. This is a mistake if you are keen on reducing credit card fraud. Make sure customers are asked to punch in
their security code towards the end of every financial transaction. This way,
if a cyber-criminal happens to own a digital copy of your credit card, he would
still require the 3 digit security code which can be acquired only if he
physically possesses the card.
Tracking Order and Signatures
Ensure that during shipping, your products have tracking
details on them. This will enable both the company and the customer to be aware
of when the delivery would actually take place. You also need to get the
customers signature post-delivery to prevent them from claiming that they
haven’t received the product.
