How To Prevent Fraud in Ecommerce

It’s fact that running an online business is huge risk. People are in constant fear to experience fraud and security breach. Although, it’s clear that chances of fraud are high in e-commerce, by no means it’s necessary to accept that as cost. Thanks to having access to right tools and applications in place, there are high chances of preventing hacker attacks and keeping both your customers and your business safe.

If there’s one person who knows your business than anyone else, then it’s yourself. You are very well aware about buying patterns of customers and who spends what. It’s highly suggested by experts in our team to maintain account information and security red flags such as shipping address information, inconsistent billing and other private information of customers. Seek for the tools to track customer IP addresses and give more attention to addresses from countries who are famous for fraudulent activities.

Make use of Address Verification System (AVS)

Address Verification System is fraud detecting tool being present in most payment gateways in Malaysia these days. It stores numeric parts of shipping address stored on customer’s credit card to the physical address on file at that particular credit card company. If any red flags are found, this kind of tools would instantly let you know about the incident and you can take certain actions from then on.

Set Up Limits

Based on data available, consider setting limits for total amount spent on your website in single day and/or total orders customers can make in over period of time. This can help you lose less in worst cases.

You might be well aware about three or four digit security code on back of your credit card. What you might not know though would be the PCI rules preventing yourself from storing CVV along with other credit card information into database. It’s virtually impossible to crack CVV based on card holder’s name and card number unless someone physically steals credit card. Most payment gateways require CVV as a part of their payment procedure. Make use of them.

Update the System

Always prefer to have your payment gateway software up to date. These companies regularly update their code and integrate security patches to fight fraud and protect the users from new vulnerabilities along with latest malware and viruses.

In addition to that, install high-quality anti-malware protectors and anti-virus software into your payment gateway system. Avoid using cracked version of anti-malware software as they are highly insufficient.

Domain Based Message Authentication, Reporting and Conformance (DMARC)

The most common type of frauds are email frauds. Sometimes they are easy to discover but hard to fight with. With that said, make use of DMARC technique to figure out fake emails and potential frauds.

In addition to protecting your customers from clicking potentially damaging fraud links, email authentication can help you protect your business from misinterpreted.

At the end, always prefer to do ongoing maintenance of your ecommerce platform and look for potential vulnerabilities if there are any. Don’t wait for your first fraud to happen. Figure out earlier and never let it happen.