How to Prevent Credit Card Fraud on Your Ecommerce Store
E-commerce stores are becoming a favorite shopping alternative for numerous customers, given the convenience and time savings it provides for shoppers.
But with this increase in popularity comes the threat of credit card fraud, with businesses reporting attempted fraud in their stores every few months. Due to this, companies need to stay vigilant in their security measures to prevent a loss of reputation and eliminate the loss of confidential customer information. So how do you prevent fraud attacks on your e-commerce store?
Implement Manual Checks for Fraudulent Purchases
The first way to prevent credit card fraud is by performing manual checks on any purchase flagged as fraudulent. This might require hiring a few employees to take care of this, with the rewards exceeding any time and resource inconveniences. Call customers who make these orders and inquire about their purchases while requesting extra verification. If the details check out, proceed with the order with any questionable activity resulting in a denied request.
One-on-one checks help deter opportunistic individuals from targeting your store due to the harsh legal actions associated with cyber attacks. This article, for instance, discusses the implications of credit card fraud, with the law requiring sites to report such threats to curb the increase in card theft. If scammers are aware of these efforts, they will likely avoid your site, making it essential practice to introduce to your company.
Use SSL Protection
SSL, Secure Sockets Layer, protection encrypts data sent between your server and a visitor’s browser, making it impossible for hackers to read and exploit information from your store. Websites with HTTPS URLs are good indicators of SSL protection, a safeguard you should also consider getting to keep your data safe. All you need to do is purchase an SSL certificate, allowing you to get guaranteed protection against card fraud.
Be On the Lookout for Suspicious Activity
Suspicious activities will manifest as unexpected behavior, which will likely point to credit card fraud. One sign of being on the lookout for includes multiple small orders. Scammers will first commit fraud on smaller orders that are hard to detect, after which they move on to larger orders. If you notice this, have it checked. Next, look into purchases that have different shipping and billing addresses. Numerous scammers will use a shipping address other than the one listed in the billing address to avoid any direct trace to their location.
Other signs of being aware include multiple orders from different cards, multiple back-to-back purchases, and multiple failed transactions. In addition to this, if you also receive purchase orders from random phone numbers and email addresses that do not seem right, make it a point to follow these up with your IT and security department.
Perform Audit Checks on Your Website
Audits are a necessary part of company operations, with frequent checks allowing you to uncover threats you may not be aware of. The checks could be internal or external, with your audit team or third-party companies tasked with this activity. A few areas to consider auditing include PCI compliance, malware safeguards, software, and SSL certificates. If these are out-of-date, they could act as backdoors to your company's site, putting your business at risk.
Adhere To PCI Regulations
Businesses are required to comply with PCI regulations, with the Payment Card Industry Security Standard Council enforcing measures that help you secure all data transacted on your e-commerce store. This allows you to benefit from encrypted data cardholder safeguards, restricted information access to authorized personnel, and antivirus software updates. This will often be the foundation of your security framework, with any extra measures acting as an added tool to boost safety in your e-commerce store.
Ask for Proof of Delivery
Proof of delivery may seem unnecessary, but it will especially come in handy if you ship expensive items, making it worthwhile. For starters, make it a point to ask for the recipient's signature upon delivery. If you utilize delivery companies, ensure that they get a photo of the area of the destination. These measures will ensure that scammers who rely on chargeback schemes and identity theft keep away from such strategies, as they allow you to uncover illegitimate purchases.
Utilize CVV Codes
CVV codes have been revolutionary in preventing online theft as these often utilize the three or four digit numbers printed on the payment card. The card verification value allows store owners to verify that the shopper has the credit card in their possession. E-commerce sites should ensure that their customers provide this code for their purchases, minimizing the chances of scammers using only the credit card number with no added proof to back their authenticity.
Limit the Data You Collect
While customer data is a source of analytics and gives you leverage in your marketing campaigns, not all information will be necessary. Data such as birthdays and family member details will often not add value to your company, exposing your website and customers’ credit cards to more data breaches. With this in mind, only collect what you need for product and service delivery, with names and addresses often adequate for everyday transactions.
Utilize an AVS
An AVS, Address Verification Service, is the last measure that you can use to keep your e-commerce store secure. The AVS checks if the billing address provided by the customer is the same as the one provided by the credit card issuer. If these do not match, the transaction is flagged as a possible fraud, preventing likely theft.
Whether you operate a start-up e-commerce store or manage a well-established store, your customer’s data and your business information need to be kept secure at all times, allowing you to limit fraud attacks. Solutions such as getting SSL certificates, performing audit checks, and being on the lookout for suspicious activity are just some options to consider when running your website. If you need more solutions, the above guide will come in handy in helping you enhance your business’s data security. Consider utilizing these strategies for year-round protection safeguards.
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