Merchants must continuously protect themselves. However, during peak demand periods they should also be concerned with how long order authentication takes. In other words, legitimate purchases must be approved as quickly as possible not to turn away good buyers, but at the same time care must be taken to stop fraud, which always increases during peak periods.
Below are four points merchants should pay particular care to:
- Be careful with high cancelation rates. Holidays always result in increased sales. In addition to worrying about fraud rates, it is important to pay attention to cancelations and turn-downs. Merchants with low fraud and high cancellation rates will lose money, as they are losing sales and hurting their image. On peak dates sales normally increase faster than fraud attacks, so that more aggressive approval policies may be used.
- Fraud gets more and more sophisticated. Fraudsters are not doing this as a hobby or for fun. Fraud is not considered an illegal profession. So be prepared to deal with creative attempts at fraud, which can focus on several stores at the same time.
- Consider if it wouldn't be best to retain expert support and for you to focus on your core business and important metrics. You can focus on business and outsource back-office activities, for example
- Companies must adopt fraud prevention strategies. Figure out which is the right decision - to find a partner who will provide fraud prevention services, or do it in-house. Whatever you decide, bear in mind that a solution should use highly accurate and qualified artificial intelligence. The harder it is to automatically differentiate between good and bad customers, the longer will be the waiting time for order approval and the higher the number of cancelations, which also affect your revenue.