How To Protect Ecommerce Payment Fraud
The sales of online stores are increasing exponentiallyand show no signs that they are slowing. Unfortunately. E-Commerce payment fraud with credit cards attempts on online transactions are also increasing.
The fraud committed by credit card is considered to be the most one kind of fraud that occurs in the United States. According to the 2021 Federal Trade Commission Report. A particular type of credit card fraud. Referred to by its name of card-not present (CNP) is committed at a significant scale.
eCommerce payment fraud is a significant concern for any business. It’s particularly relevant for CBD shops as well as other high-risk businesses which aren’t able to use the payment services and solutions generally offered by conventional financial institutions.
Cybercriminals and identity thieves attack high-risk companies because they are aware that a lot of these businesses do not have the right equipment. Technologies and systems for processing payments. And aren’t equipped with the latest security measures to safeguard the online carts they use to shop from fraud.
With a little common-sense knowledge and basic security measures to safeguard payment processing and payment gateways businesses can limit the risks to their business as well as their customers.
Benefits of eCommerce for high-risk businesses
Certain CBD shops as well as other merchants have opted to not go down the merchant option via e-commerce because of cybersecurity concerns. As well as the cost. Time and effort for implementing online payment capabilities. In today’s highly technological and highly competitive market online shopping carts and credit card processing are essential.
Consumers are not just happy with the ease of having the ability to shop and buy products on the internet, but they also want to to do it easily. In addition. They expect to have a pleasant experience with the businesses they do business. A shopping cart online that is secure and safe for payment gives you the chance to dramatically increase your customer base and also provide an enjoyable – not complex or risky to your customer.
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Types of online ecommerce payment fraud
To understand the best ways to take steps to protect yourself from eCommerce payment fraud is essential to be aware of the types of fraud is available.
Ecommerce fraud prevention is based on the past and current technological advances to understand the ways hackers take data from small companies and other small businesses. However we can take the lessons from the mistakes of others to defend ourselves and secure our personal data. The types of fraud that are committed vary in a wide range. From tiny (but nevertheless crucially important) transactions that take over accounts to large purchases made using trusting customer’s information. This could result in your losing the customer. And they may inform their family and friends your site is not secure.
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As an online retailer you also have to deal with the fact that 8percent of all online retailers have fraud prevention strategies which account for 11 percent or more of their revenue. This is why we look into all types of fraud, to ensure you’re prepared for any fraud.
Card Testing Fraud
In terms of eCommerce payment fraud, testing cards is among the most popular kinds of fraud. It involves a person trying to purchase items from your website with another’s credit card number they’ve stolen. Typically, fraudsters begin with a cheaper product. Thereby the entire “testing” of this type of fraud.
However, if they slip in the shadows of the fraud detection tools and start buying more expensive items before being caught. Which results in the credit card being cancelled. The fraudsters use bots to verify the details of a credit card to ensure that it’s legitimate before they purchase products. Companies that protect themselves from fraud on the internet can stop this from happening in several methods. Which we’ll be discussing in the next section.
Account Takeover Fraud
Fraudsters are able to access accounts of customers they have access to. Gain free reign over the private details of the account owner and can alter the account’s details to block the customer from being able access the account. They can also access the personal details of the account holder (address and credit card information) as well as be able to track them using cookies and even purchase items using the name of the customer. A lot of the time fraudsters will avoid any unorthodox activity to ensure they won’t be getting caught.
Interception fraud occurs when the criminal purchases items on your site using the stolen credit card. But this time , the personal details they provide to you. Including the number of credit cards used. The billing address, and the name on the credit card. All correspond. Once the purchase has been made then they “intercept” the package and get the items for themselves. They usually contact the victim after the purchase has been made and request the address of delivery to be changed or they may remain (if they live close to their victim) and get the package off the front door at the address of the victim.
Sometimes, eCommerce payment fraud is caused by innocent and straightforward errors. Chargeback fraud occurs when a buyer buys a service or product prior to calling their credit card provider to cancel the transaction. This is referred to as “friendly fraud”, and in the context of e-commerce fraud security. This isn’t the kind of fraud to be concerned about.
Refund fraud is the act of a person buying a product or service through your website with an unintentionally stolen credit card and getting it refunded to their credit card. Which allows them to have the money transferred into their account. This causes the credit card that was originally used to purchase the product not being reimbursed. And as a owner of the business. You are accountable for the amount originally owed to the credit card holder.
What can businesses do to protect ecommerce payment fraud?
Simple cybersecurity measures can deter thieves. Guarantee conformity and help you offer more efficient customer service. Begin with an address verification system to verify the address, and also to request security codes for credit cards. Which are often not available to thieves. Many thieves avoid online retailers and shopping carts with these security protocols as it’s just not worth the effort.
You may also request that your shopping cart software identify orders with amounts or values that are significantly higher than the normal. If you think a certain purchase is to be a risk. You can examine the purchase in person and call the cardholder directly to confirm the authenticity of the transaction.
If you spot any fraud. You should keep a list of credit card numbers as well as email addresses and IP addresses that are associated with the transaction to ensure you can thwart any subsequent attempts.
A secure payment solution to protect ecommerce payment fraud
There’s another method to protect a business’s internet-based cart. It’s called Payment Guru an affordable and safe option for high-risk companies like CBD or vape stores which rely on the internet for commerce.
Payment Guru has years of experience dealing with businesses that are high-risk and can understand their requirements. We provide personalized payment solutions. Top customer service and 100% compliance to help you safeguard online commerce and expand your business.