Make Fraud Protection Your New Year’s Resolution
With 2018 poised to be another record-breaking year for online sales, e-commerce merchants are resolving to increase profits. Unfortunately, fraudsters are too, and they’re capitalizing on online retailers’ weaknesses in several ways — like creating synthetic identities, opening credit card accounts and launching account takeover attacks.
To combat this risk, merchants must start off 2018 with an arsenal of fraud protection solutions that secure sensitive customer data and reduce the risk of fraud and chargebacks.
7 Ways to Keep Your Fraud Protection Resolution
In 2016, every dollar of fraud cost merchants $2.40 — potentially devastating for a growing online business. Combine this figure with the increasing number of fraud attacks and data breaches last year (like the Equifax breach), and choosing the right fraud protection solution becomes a pressing need for 2018. The good news is that increased security can be easily achieved when merchants resolve to:
As data breaches and Web-based attacks increase, customers want to know if an online retailer’s site is safe before they make a purchase. Instill trust by using robust Secure Sockets Layer (SSL) authentication to encrypt data in transit and reduce the risk of customers having their financial or other personal information stolen. Merchants who work with a security provider, like VeriSign, should add their logo to their websites.
All businesses that accept or process credit card transactions — whether they’re brick-and-mortar or online merchants — are subject to Payment Card Industry (PCI) regulations to keep credit card data secure as it moves from a merchant to the credit card processor. Many leading fraud protection solutions are now PCI-compliant, saving merchants the time, money and resources that are required when building their own solutions.
Avoid Storing Sensitive Data
Storing customer data, like credit card number and card verification values, for future use seems convenient for merchants and customers. But PCI standards recommend against retailers storing any sensitive data found on a credit card’s magnetic stripe or chip. Instead, merchants should store only enough data to process chargebacks and refunds, like cardholder names and expiration dates. Storing too much customer data increases a merchant’s fraud risk, making them (and their customers) increasingly vulnerable to fraudsters.
Implement an Address Verification System (AVS)
AVS can identify potential fraud by flagging mismatches between the billing address a customer enters and the address on file with the credit card company. It’s currently one of the most common tools for identifying potentially fraudulent transactions, with more than 77% of online merchants using it.
Require Stronger Passwords
Help customers protect themselves by requiring strong passwords with a character minimum and the use of capital letters, numbers and symbols. By creating unique, complex passwords, customers make it more difficult for criminals to steal valuable consumer data and take over accounts.
Set Alerts for Suspicious Activity
Fraud filters can notify merchants about suspicious transactions — like when the same IP address initiates multiple transactions or a customer places multiple orders using different credit cards — before they’re approved.
Provide Security Training to Employees
Every merchant should document security policies and procedures and regularly train employees to ensure they follow established security practices. Best practices also include never asking for or disclosing sensitive customer data via email, text or online chat.
Track Every Order
No matter how a merchant mails an order, they should always create and provide tracking numbers. Not only do tracking numbers let customers track their order every step of the way, but they also help merchants avoid fraudulent chargebacks for “items not received” claims.
Starting the New Year With a Robust Fraud Protection Solution
While these tips get merchants started on the road to a comprehensive fraud prevention solution, they’re still not enough to provide the complete protection merchants need to combat savvy fraudsters. The new year is the perfect time to evaluate protections already in place and prioritize security goals for the year ahead.
A multilayered security system is one of the best ways to protect an online business from cybercriminals. ClearSale offers a unique combination of advanced fraud filters, trained staff and cutting-edge technology to minimize your risk exposure, reduce the risk of chargebacks and eliminate false declines. Contact a ClearSale analyst today to find out more about the ClearSale solution that lets e-commerce merchants stay one ahead of fraudsters this year.