The importance of IT in business can't be overstated. This is particularly true for online merchants, as they have a number of risks to consider.
As you might expect, this primarily includes cyberattacks. However, it also includes fraudulent payment activity.
If you don't have a solid infrastructure as an eCommerce business, you will struggle to overcome this challenge. Unfortunately, there has been an unprecedented rise in eCommerce fraud over the past couple of years.
Let's explore what you need to know and the steps you can take when it comes to preventing this type of fraud.
eCommerce fraud is the use of deception to obtain money or goods from an online retailer. This can include schemes such as credit card fraud, return fraud, checkout fraud, account takeover, new account fraud and more. These are just a few approaches that fraudsters attempt.
With more people shopping online, criminals have found new ways to exploit the system.
There are a number of reasons for the increase in digital fraud.
As mentioned, one factor is the growth of online shopping. Additionally, criminals have become more sophisticated in their attack methods, and new technologies have made it easier for them to carry out scams.
Some businesses are not doing enough to protect themselves from card-not-present (CNP) digital transactions fraud. Many companies still rely on manual processes to verify eCommerce transactions, which makes them even more vulnerable to CNP fraud.
As time goes on, these losses can easily add up and it could also hinder your ability to scale your company when you intended to.
Small businesses aren't immune from eCommerce transaction fraud, either. In fact, criminals might target them due to the fact that they have fewer resources to work with in terms of protection.
Fortunately, there are a number of things that you can do to prevent eCommerce payment fraud.
One of the most important steps is to have a strong payment fraud prevention solution in place. This will help you to detect and prevent fraudulent activity. You should also use fraud prevention tools such as credit card verification and address verification.
Interestingly, many entrepreneurs are unaware of the fact that using professional software can greatly aid in this endeavor. Vesta offers a comprehensive fraud prevention solution that can accurately detect fraudulent activity before it occurs at your business.
Hopefully, you can then use this information to revamp your fraud prevention policies to make it more difficult for eCommerce fraudulent activity to occur in the future. You can check out this page to learn more about how you can benefit with an advanced fraud prevention tool.
With the right tools in place, though, preventing digital transaction fraud and approving more orders can be achievable for your business. Keep the above eCommerce fraud prevention guide in mind, in order to circumvent obstacles that you would have otherwise encountered.
Want to learn more about what we have to offer? Feel free to get in touch with us today and see how we can help.
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