As the eCommerce economy keeps growing, so does eCommerce fraud. Reports show that there has been a revenue loss of about $20 billion in 2021 alone due to this type of fraud. For online store owners, this is risky as you want to reach as many customers as possible. Still, you want to ensure you are not a victim of revenue loss. So what steps can you take towards chargeback prevention, avoiding identity theft, and any other type of fraud that online businesses are exposed to? Below you will find several ways you can use to fight eCommerce fraud.
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Monitor Your Site Regularly
Brick-and-mortar businesses usually have security personnel to catch shoplifters. For an online store, you will have to monitor your website for any suspicious activity. Keep an eye on your accounts and transactions for anything alarming. This can be inconsistencies in billing or shipping information. Some tools can help you track customer IP addresses and inform you of addresses from places commonly known as a base for fraudsters.
If Possible, Do Not Collect Too Much Sensitive Customer Information
With cybersecurity threats on the rise, one way of protecting yourself if you are hacked is collecting and storing little information on customers. Even if you are hacked, there will be nothing much to steal from your systems. Therefore, you only collect the information you need from customers such as name, shipping address, etc. Any other sensitive consumer data that is not necessary to avoid. This includes birth dates and social security numbers.
Use Fraud Detection Tools
This is one of the most effective ways to fight eCommerce fraud. Fraud detection tools help identify alarming transactions, hence protecting merchants. If you have just started an eCommerce store, you may be wondering what are chargebacks, card testing fraud, or refund fraud. If your business is yet to be exposed to any eCommerce fraud, place measures as early as possible. E-commerce fraud is costing companies a lot of money, and the most effective way is to prevent it from happening. Talk to a specialist on such matters and find which tools you can install in your system to protect yourself.
Be Extra Cautious During Holidays
During the holidays you need to be extra vigilant. Even on events like Black Friday, where many people are purchasing products online, be careful. With the high number of people buying products, merchants are occupied with the many orders they get and are not keen on fraud issues. This is where fraudsters take advantage, as they know most store owners have let their guard down. Therefore, tread carefully when you get huge orders or rush orders as they could be signs of fraud.
Set a Limit on Purchases
Depending on your revenue and order trends, you can limit the number of purchases you will be getting from a single account in a day. This reduces your exposure to fraud should it occur.
With fraudsters coming up with more sophisticated ways of attacking online retailers, you need to be more vigilant. Fortunately, tools to help combat online fraud are also being innovated daily. You only need to look and talk to experts in the field, and you will have managed to reduce the risk of eCommerce fraud.