Fraud Prevention Tips For Your Online Business

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Payment fraud, or fraud involving payment fraud through online payment gateway, is frequently referred to as one of the most serious threats confronting today's eCommerce businesses. What does it entail? To put it simply, fraud occurs when an unauthorized person pays for goods or services.

Because of the rapid development of real-time payments, the world is seeing an increase in fraudulent online transactions. According to NFC World, speeding up the billing process makes fraud prevention increasingly difficult. Detecting irregularities in a matter of seconds appears to be a significant challenge for banks and payment providers. According to the aforementioned service, this increased risk can be clearly seen in India, where payment fraud doubled in three years starting in 2015, and increased by another 270 % over the next six years.

Fraud and data leakage
Payment fraud, or fraud involving payment fraud, is frequently referred to as one of the most serious threats confronting today's eCommerce businesses. What does it entail? To put it simply, fraud occurs when an unauthorized person pays for goods or services. ...
... In practice, it is usually a transaction made on the Internet by a fraudster using a stolen payment card or stolen data: the card number, the holder's name and surname, the expiry date, and the security code (so-called CVV). Almost every day, the media reports on data leaks from various types of organizations' databases, including large online stores and financial institutions. According to one study, nearly 3.5 thousand personal records are leaked every minute around the world from various institutions.

Threats lurking on eCommerce
Although the mechanics of payment fraud are similar across all segments of online commerce, the specifics of the phenomenon - and thus what motivates fraudsters and directly influences how they operate - differ fundamentally across market segments.

According to the EY report, up to 71 % of the 150 e-commerce companies analyzed, with an annual turnover in online commerce of at least $100 million, do not use any technological solution to protect against fraud, and only 35 % have any procedures in place to prevent excessive costs associated with chargeback. The digital goods and services industry, in general, is the most vulnerable to payment fraud. In the digital goods segment, the average value of a single transaction is relatively low, while the number of transactions carried out in almost any unit of time is high. The aforementioned conditions favor the automation of scams through the use of bots and mass transactions.

Prevention is always better than the consequences

Chargeback protection & 3D Secure
Chargebacks can be reduced by safeguarding your online store. You can protect real card owners and your site from card fraud by using 3D Secure and other anti-fraud tools. This will avoid lengthy and contentious disputes over payments and chargebacks using the best online payment gateway.

Knowledge is a power
Unfortunately, regardless of the security measures in place, we frequently run the risk of losing our own funds. Many Internet users are duped by suspicious links, emails, or messages sent by anonymous recipients.

Hire risk manager
It is not difficult to imagine that in an era of rapid technological development, many solutions have emerged on the market to assist businesses in protecting themselves from fraud. The fight against cheaters is the responsibility of risk managers in almost all markets where cards are dominant. These are experts who understand how Internet criminals operate and how online commerce works.

Technology
Companies that use technical solutions to reduce the risk of fraud account for only 35% of the surveyed population. These businesses use both rule-based and machine learning solutions. As a result, it can be seen that the new generation solutions are only gaining popularity among companies that are acutely aware of the fraud problem.

Biometry and identification
There are currently solutions on the market that use deep, multidimensional user profiling as well as advanced machine learning. The profiling tool can "x-ray" each user of the online store or native application, collecting thousands of data points that characterize its hardware, software, network environment, and interaction with the website.

Protect the customer data
You are not required to store any card-specific data on your system. If you enable recurring payments, there are some technological solutions that can help you secure all of your customers' transaction details and encrypt them for greater security.

Trends year by year
When comparing trends from last year, security takes the top spot because it is the foundation of customer trust. Furthermore, if we do not take care of it, it can be quite costly for business.