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Business Solutions That Reduce E-Commerce Fraud

Instances of e-commerce fraud are increasing day by day with retailers dealing with identity thefts, account takeovers, CC fraud, and chargebacks from mobile and online channels. The main challenge is to ensure that customers still have a great experience and find ways to prevent e-commerce frauds. The following are a few business solutions that can actively reduce e-commerce fraud and will also help in enhancing customer experience –

E-Commerce Platforms With Risk Management and Fraud Protection – When businesses choose the right platform for their website, design and cost often takes precedence over everything else. However, this is one area where you can improve the security of your website. There are some e-commerce platforms that offer great customer service in case of fraud and also have measures to prevent such a thing from happening. Best choices are Shopify, Stripe, Highwire, Volusion, Payzaa, Bigcommerce, Magento, osCommerce, FoxyCart, and DPD.

Don’t Store Sensitive Customer Information – According to PCI standards, businesses cannot store the CVV2 number, expiration dates and other credit card details of their customers. This is to prevent hackers from stealing vital information. However, for recurring payments, PCI allows it. Businesses should make sure that, in case of recurring payments, they are not storing CVV2 codes. If they can’t steal from the customers, neither can hackers.

Prevent Chargeback Frauds By Using Tracking Numbers – Chargeback fraud is usually committed by customers. Even after the business delivers the product, the customer claims they never got it and demand a refund. The bank of the customer would, in this case, forcibly make the refund and the business would be accountable. To prevent this, businesses must have tracking numbers to ensure that the parcel is reaching their customers. When delivered, signatures must be made compulsory as an added measure.

Risk Scoring of Transactions – Settings can help to score the risk factor of all transactions in real time based on data factors. For normal transactions with no risk, payment can go ahead unhindered. However, for transactions falling within certain parameters, manual reviewing should be done before the order is given the “OK’. In order to completely manage the chances of fraud, post-purchase management is also important. It would prevent chargeback frauds.

Common security actions like making the customers use strong passwords, using security codes on credit cards, setting up system alerts for suspicious activities, using https: while checking out, updating database passwords regularly, and hiring an auditor to check system security can also help in preventing frauds.

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