Fraud is a concern commonly expressed by customers as well as businesses when it comes to e-commerce. Luckily, a number of solutions have been introduced to deal with the potential problem. They depend on which aspect of business it’s related to, so companies can consider investing in security as a way of reducing fraud costs in the future. Here are some promising strategies to prevent fraud in e-commerce.
Chargeback fraud is a common yet versatile and highly unpredictable scenario where a person purchases a product and, on receiving it, claims that their credit card has been stolen and the transaction must be deemed invalid. The individual behind such a scenario doesn’t have to be a scheming fraudster, though. Sometimes people fail to recall a shopping episode or prove unable to match a store’s official name with the sign they associate it with.
A chargeback rate that’s too high can damage a business’ reputation and/or financial standing since the costs associated with processing such claims can be considerable. Complex solutions have been developed to predict and nip in the bud possible chargeback episodes before problems arise. This can be done through in-depth analysis, in particular by using technology in artificial intelligence.
Criminal Pattern Analysis
Machine learning and other advanced technology can be utilized to trace any patterns shown by cybercriminals. There are many schemes that are based on trial and error because the algorithm enables fraudsters to obtain useful information for future wrongdoings. Trying to decipher vast arrays of data in search of an elusive trend would be too much for human staff alone. Luckily, there are solutions that automate the pattern search stage to suggest potentially untrustworthy transactions.
Clear Customer Data Policies
Numerous cyber fraud schemes that are much feared in the world of e-commerce involve the criminals requesting and, in case they are lucky, obtaining customer data that can be used to effect fraudulent transactions.
Apart from the pattern analysis techniques mentioned above, one approach to this problem is to strictly regulate which customer data can be disclosed to whom and under which procedures. Full integration with other solutions currently being implemented is vital, though. It’s only in combination with other measures that a policy can reduce existing risks.
Make Sure Double Sure
If you are running your business online, more than one fraud threat is very likely to exist at any given moment. From phishing and credit card fraud to friendly fraud and infinite options across the range, trying to manage all the risks within a single approach might sound like an overwhelming task.
It’s, therefore, advisable to mix and match the above strategies depending on what fraud types you expect to encounter. The trick here is to keep your policies consistent while ensuring good coverage. An all-around solution, which integrates different strategies to target various fraud scenarios with a degree of automation, enabling you to spare human resources, is the perfect way to keep fraud in check without sacrificing your business’ natural development.