How to Protect Your Ecommerce Store from Payment Fraud
According to the Association of Certified Fraud Examiners, nearly 50% of small businesses fall victim to fraud at some time in their own business lifecycle, costing them an average of $114,000 per incident.
Apart from phishing and hacking, should you take a payment that was fraudulent, you will be held fiscally responsible for the loss.
Thankfully, there are steps you can take to help minimize your own risk and protect yourself as well as your customers from digital attacks. Below are some on-line best practices for maintaining your shop safe.
Two Types of Online Store Fraud
Before we discuss that which you can do to minimize your risk and protect your e-commerce store from fraud, it’s helpful to understand approaches that are common that scammers use.
You’ll find lots of forms of online fraud, however, they are able to be broadly categorized in the following two buckets:
- Account takeover: Most e-commerce shops provide customers with accounts that store financial data, personal information, and purchase history. Perpetrators often hack into these accounts through phishing systems. In one of the very frequent tactics, fraudsters send e-mails to trick customers into revealing usernames and passwords. They change the passwords, then log into your customers’ accounts and make unauthorized purchases.
- Identity theft: Although most companies take many precautions to secure customer information, fraudsters have the ability to hack into databases and steal usernames, passwords, credit card numbers as well as other personal information.
This sort of fraud that is e-commerce is difficult to detect because lots of people do their credit card statements are checked by n’t completely — and because victims commonly haven’t any notion that an online account opened inside their names.
Bob Bryant shares industry tips to help detect and resolve fraudulent purchases. Bob also shares resources and steps to follow in the event you need to dispute a fraudulent case.