Have you ever been a victim of fraud? These attacks cause lost revenue, bank fees, penalties, and damage reputations. The COVID-19 pandemic has seen a sharp upstroke in cyberattacks.
This makes fraud prevention solutions a key priority. Keep reading to learn about the risks and how to enhance your business’s security.
COVID-19 Fraud Prevention
During the COVID-19 pandemic, more retailers are conducting e-commerce and contactless transactions. This means more card not present (CNP) purchases. Increased CNP purchases open the door to hackers.
Juniper Research examined retailer risks with increased CNP-based commerce. They predict that companies will lose about $130 billion from CNP fraud between 2018 and 2021.
Thus, retailers must enhance their fraud protection while facilitating e-commerce marketing.
Customer Expectations for Holiday Shopping
Increased e-commerce transactions between January and August 2020, generated $497 billion, according to Adobe. In 2019, only two days during the first eight months exceeded $2 billion in online sales. In 2020, there've been 130 days with over $2 billion in online purchases.
These trends are expected to increase with holiday shopping. While companies prepare for higher e-commerce trade, fraudsters are planning as well.
Ecommerce Fraud Prevention Strategies
Hackers often gain access via holes in customer identification systems. They also use stolen credit cards to make purchases and sell information on the Dark Web.
Some merchants allow "guest" customer purchases. This means there's no customer data or account. Fraudsters love exploiting this process. They use many scams to avoid detection because retailers don’t have customer data.
This makes Account Takeovers (ATOs) and CNP fraud easier. They can also hijack abandoned carts. Cybercriminals use stolen credit cards and even divert shipments to different addresses.
Avoid Cart Abandonment
Today’s consumers have no patience for slow, restrictive consumer sites. Build a site that’s intuitive and moves smoothly through the process. Only ask for the necessary information and avoid having customers re-enter data.
Most people won't read long instructions. Many customers now use mobile devices, so keep forms simple and short. Offer live chats or online help options.
Prominently show the customer your pricing from the start. Consider a sidebar showing subtotals, taxes, and shipping fees as they shop. If the customer gets to the end and sees a higher total than expected, they’ll leave.
Businesses can help decrease ATO by using CIAM and multi-factor authentication (MFA). These solutions increase sign-on security and access to derail fraudulent ATO.
Customer identity and access management (CIAM) controls the user’s access to services. They’re able to seamlessly enter your site via mobile, internet, or other devices.
The company authenticates the credentials using software that doesn’t display customer data. These security platforms only display "accept" or "decline" for access requests.
MFA makes it harder for hackers to guess security answers. Businesses are now employing biometric data such as facial recognition and fingerprints. This system doesn’t rely on what someone knows which is the cybercriminal tactic.
Decreasing CNP Fraud
Employing CIAM and MFA are important strategies for decreasing CNP fraud. Consider machine-learning artificial intelligence systems that analyze and flag aberrant buying behavior. Look for solutions that offer 100% chargeback guarantees to reduce lost revenue.
Watch for small purchases which may be testing to see if the stolen credit or gift card works. Avoid “guest” account purchasing.
Do You Need to Elevate Your Transaction Security?
Businesses and customers suffer from e-commerce fraud. This makes fraud prevention a key concern.
Vesta provides constant monitoring of global payment fraud patterns to protect customers. Recently, we sponsored a CNP Fraud Chargebacks event with Chargelytics speaker Karisse Hendrick.
Contact us today to learn about our solutions and 100% chargeback guarantee.