E-Commerce is growing new business, for both business owners and scam artists. In order to prevent fraud on these transactions and protect your customers, try the following four tips to prevent such fraud on e-commerce websites:
1. Address verification service (AVS) – This service automates the process of verifying that the address a customer provides matches the address information provided by the credit card issuing bank.
2. Fraud prevention software – Research several security companies who offer fraud prevention tools that can help detect malware-driven transactions, phishing attacks, and many other types of criminal activities.
3. Require CVC2 and CVV2 verification – When the time comes to checkout on your site and make a payment, require customers to enter the 3-digit security code on the back of the card in addition to the card’s expiration date. This is an extra precaution, since there is a lower likelihood that a cyber criminal who has managed to steal the number will also have that 3-digit code.
4. Verify Every Transaction– The customer should be immediately notified on even the smallest issues or concerns. Most cases a cyber criminal will not be so bold as to actually respond to direct contact, and if they do, you can often catch them in their lies.
Fraud prevention must be a combination of good technology, such as automated verification systems, as well as good business security practices. You can also educate your customers to be safe when shopping online, and with a combination of these tips, you should be able to minimize fraud on your e-commerce website.
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