Instances of fraudulent activities are galore on the Internet platform. There are numerous e-retailers who are selling different kinds of products and services on the World Wide Web and the fraudulent cases have been recorded from the world across. Fraud is a risk that every business faces. But, the business also needs to take action in such a way that it is immune to such fraudulent activities of the customers.
Top 3 things to do to manage fraudulent transactions on your website
Real Time Monitoring of the Fraudulent Activity
One needs to start right from the basics. It is essential that you have the tried and tested fraud management tools in your kitty along with the right monitoring so that you could avert majority of the fraud even before it can happen. You could have tools like CVV/CVV2 validation to accomplish a payment transaction. You could have an Address verification option; you could have negative database checking or IP Blocking and also Order Velocity Monitoring. You could choose any of these depending on the nature of your business and the nature of fraud that may be committed.
Flagging Potentially Fraud Transactions before Release for Shipment
It is extremely essential for the e-retailers to give their operational staff the powers to flag or hold or review or even decline a suspicious transaction even before the release of the shipment is through. This is possible when you have the ‘device intelligence’ in place. This system assesses all those Card Not Present transactions in absolute real time and makes use of the data and couples it with the device attributes and data points into a score that will help the retailers to validate and authenticate the transaction and thereby mitigate fraud.
Cardholders Data can be Tokenized for the Repeat Customers
The e-retailers have to create a bank of repeat customers and also give them an awesome checkout experience. When they experience a good transaction, there is every chance that they will come back for more. However, the e-retailers will also face a problem as to how they can store the data in the PCI compliant manner. So, one needs to use a gateway that is PCI certified and leverage tokenization system and also store the billing profiles of the customer. This will definitely help in mitigating the risk and also lowers the cost for the e-retailer.
We understand that in the current scenario it has become extremely essential to protect oneself against fraud. Frauds committed through mobiles cost three times more than the actual value of the product that has been stolen. Therefore, it is extremely essential to have a robust fraud protection in place regardless of the magnitude of the business.
A robust system is the call of the day because the fraudster is no doubt tech savvy and is able to successfully mask his identity.
Few more tips that will help in identifying fraud
Detection and Evaluation of Proxy
There are services which will perform a real time analysis to detect a proxy. You could also do a simple web search for the given IP address along with the keywords like ‘proxy’ and it will help you decide if it is a public warning list or a current proxy.
Geo Location is yet another point that will help in identifying fraudulent transactions. It is the IP address and the endpoint of it which will be able to suggest the location of a customer when he or she is placing an order. There are also quite a number of online services that help you get the IP location for free.
Address Verification Service
Validity of an order placed can be evaluated with the help of AVS data. When the AVS address and the IP address appear to be close, it is a sign that the order that is being made is quite valid.
Hiring an Expert
Small businesses or large businesses or mid-sized businesses, they can protect themselves against fraud when they have adequate measures in place to protect their store. A major chunk of the costs can be saved when they have a risk management team. There are the review tool administrators and various other services like turnkey risk management platforms which will take good care of the order review process.
Regardless of the magnitude of the store, the e-retailer should take care of the order review process and also risk management tools. When you have limited resources, you will have to be extra careful in order to safeguard your store against fraudulent activities by miscreants. Hire Magento expert team who can advices on eCommerce fraudulent transactions and you can focus on the most important aspect of your business.
Research done in recent times also has predicted that the volume of business that will be accomplished through mobile phones will only be on the rise and emphasizes the necessity to have a strategy to fill the gaps in the existing token based payment system.
One should also make their store secure so that eCommerce fraud activities can be minimized. Check our earlier post where we have mentioned how a business can make Magento eCommerce store secure by following some safety tips.
M-Connect Media is a firm that is specialized in offering Magento ecommerce solutions to businesses that hail from diverse arenas. The company delivers timely solutions, and adopts a pragmatic approach to help its clients save their skin from the acts of fraudsters on the World Wide Web. In case you are also looking for protection against these online miscreants, get in touch with the experts at M-Connect Media and they will have a plan that is best suited for your kind of business.