The Clearsale Blog

7 Suggestions for Preventing E-Commerce Fraud During Holiday Season

7 Suggestions for Preventing E-Commerce Fraud During Holiday Season

With enhances in credit card security at brick and mortar stores, fraud is increasingly moving to an online arena and the holiday season is the peak time for e-commerce fraud. While the percentage of bad transactions is actually lower during the holiday season, it’s due to the spike in legitimate transactions, and the dollar amount of loss due to fraud is actually much higher because the bad transaction is buried and hidden by all the good ones. We’ve compiled 7 fraud prevention tips here so that you can make sure your e-commerce business is protected when it matters most.

  1. Hire a service for e-commerce fraud protection.

It’s important to have fraud prevention measures and chargeback protection in place and updated long before the holiday season kicks into gear. You can hire companies which will inspect each and every transaction to validate orders and eliminate fraudulent ones. This service often comes with a chargeback guarantee to provide you with the peace of mind you need at this time of year. If the company has approved an order and the business gets a chargeback from a customer, the security company, not your business, will cover the entire cost.

  1. Have a concrete plan for the holiday season.

Online shopping increases every year during the holidays from the years before. As a business, you need to review more transactions and also hire seasonal staff, so it helps to be prepared by having a well-documented plan. When you’re writing it, try to think of all the questions that you might get during the holiday rush that you might not have time to answer: how do things get escalated, what’s the process for approving and declining orders, etc. This helps sales staff know what to do in any scenario so they’re not overwhelmed and potentially taken advantage of by a fraudster. Your plan should allow for training of all staff on the fraud-prevention tools and a calendar for staff absences to ensure proper coverage at all times.

  1. Adopt verification processes.

You should consider using verification technology that identifies fraud based on the physical and digital components of someone’s identity, looking at billing, addresses, email, phone number and location of the order. You should also look into card verification value technology which ensures that the card user is actually in possession of the card. You can also look into email authentication so you’re protected from clicking on a fake link or engaging with a message coming from a fake email address.

  1. Determine where transactions are coming from.

William Fry, a marketer at Origin Writings and Next Coursework, explains that “if you know what device the order is coming from it can help you screen more accurately for e-commerce fraud. Different devices have different fraud profiles, so you can detect interactions with humans vs bots or other anomalies in a transaction.”

  1. Avoid making false assumptions about strange purchases.

There are always going to be orders that are unusual and strange which need further authentication. Have someone in your team review and escalate these purchases following the plan you laid out before the holidays and handle the case accordingly. Most importantly, however, is to avoid assuming that it’s fraud simply because it’s unusual.

  1. Prioritize customer service.

Provide fantastic customer service that makes your clients feel safe while shopping on your website. Karen Foligno, a project manager at BritStudent and PhD Kingdom, suggests that “this includes simple measures like having your phone number displayed prominently on your website, having multiple ways to reach the customer service team, and having a friendly team ready to answer any question. You should also have your return policy clearly explained in an easy-to-find part of your website to avoid customers trying to chargeback a purchase.”

 

  1. Treat customers who get flagged with courtesy.

Fraud is evidently damaging for any e-commerce business, but you also want to be sure to avoid accidentally flagging a good customer, as this may lose their loyalty forever and lead to bad reviews. This is why it’s important that your customer service team is well-trained in how to deal with this situation and that they treat your customer with friendliness and respect, reassuring them that you’re trying to protect them and ensure their order is sent in time for the holidays.

Katrina Hatchett, a writer at Academic Brits who shares her expertise on communication problems and solutions with her readers. She has years of experience working with businesses and e-commerce sites to improve how they communicate with clients.

is every valid order being approved?

 

 

 

You may also like

How to Optimize Your Ecommerce Checkout Flow

How to Optimize Your Ecommerce Checkout Flow

You’ve put a lot of work into your ecommerce website. You’ve optimized your content, made the design responsive, and chosen the best payment acceptance solution. But instead of recovering your..

[Industry Focus] Fraud Risk Profile for Nutraceutical and Drug Retailers

[Industry Focus] Fraud Risk Profile for Nutraceutical and Drug Retailers

As people become more conscious of what they’re putting into their bodies, there’s been an increased demand for high-quality supplements and healthful food and beverages. The result has been a..

3 Ways Tech Can Benefit Remote Teams

3 Ways Tech Can Benefit Remote Teams

Ecommerce businesses are used to an ever-evolving digital connection between them and their customers. But 2020’s COVID-19 pandemic has resulted in that digital connection making its way into the..

Shopping Habits by Gender: What’s Changed in 2020

Shopping Habits by Gender: What’s Changed in 2020

Do men hate shopping online? Are women more worried about fraud?

How Management Should Contribute to Fraud Protection

How Management Should Contribute to Fraud Protection

As companies grow, management often delegates business-critical tasks—marketing, technology, fraud prevention—to different departments. While it might seem to be an efficient way to get things..

“I Don’t Need Fraud Protection — My Business Isn’t at Risk!”

“I Don’t Need Fraud Protection — My Business Isn’t at Risk!”

As an e-commerce merchant, you know the risk of fraud, false declines and chargebacks. But maybe you think it won’t happen to you because you’re a relatively new — or small — e-commerce merchant,..

How Backtesting Can Improve Fraud Prevention

How Backtesting Can Improve Fraud Prevention

They say hindsight is 20/20, and that’s especially true for e-commerce merchants looking to increase their approval rates and decrease fraudulent transactions. It’s easy to look back at..

Is Fraud Risk Scaring You Away From International Shipping?

Is Fraud Risk Scaring You Away From International Shipping?

With cross-border shopping estimated to make up 20% of e-commerce in 2022, many merchants are right to consider expanding into other countries. So what’s stopping them from pulling the trigger?

Preparing Your E-Commerce Store for the Holiday Season

Preparing Your E-Commerce Store for the Holiday Season

It might still be summer on the calendar, but the holiday shopping season is just around the corner.  Are you ready?

Want to write
for our blog?

Please review our writers' guidelines
https://www2.clear.sale/press/clearsale-guest-blog-guidelines
and then email guestwriter@clear.sale with your pitch!

Subscribe to our blog