ecommerce fraud prevention
Why Vendors Invest In The Best Ecommerce Fraud Prevention Software? E-commerce fraud has grown exponentially every year. Bigger challenges face unprepared online vendors. The imposition of lockdowns because of the COVID19 pandemic caused a massive increase in demand for online goods.
Vendors who don’t invest in the latest security and fraud prevention measures will fail to make the most of this unexpected increase in online purchasing.
In the first four months of 2020, COVID 19-themed scams were rampant. American shoppers lost $24.44 million during this period. The Federal Trade Commission received over thirty-thousand complaints regarding COVID19-themed scams during these four months. Shoppers are themselves financially strained. They may never revisit a vendor if they feel they’ve been frauded. Even worse, vendors can lose their merchant accounts overnight if a group of coordinated hackers targets them.
See Also: Cyber Security
The vendors who’ve kept themselves updated with the evolving cybersecurity technologies have avoided any losses due to hackers or scammers. They invest in the best eCommerce fraud prevention software to stay a step ahead of potential security threats. That’s why top vendors and e-commerce websites have avoided these scams and established themselves as industry leaders during this pandemic.
Here are the e-commerce fraud prevention measures these top sellers adopt. All online vendors must aspire to incorporate these tools on their platforms –
All vendors receiving online payments must comply with the security standards set by the PCI (Payment Card Industry).
PCI Data Security Standards (DSS) are crafted to certify that online sellers worldwide receive, store, and transmit users’ payment information (e.g., credit card details) in the most cyber-secure environment.
Top online retailers conduct PCI scans every month. The more compliant an e-commerce platform is with these standards, the vulnerable it is to fraudulent transactions. Businesses who sell in the EU region also need their platforms to be PSD2 compliant.
Websites with SSL certification are marked as ‘safe’ by banking organizations and third-party payment platforms.
This certification authenticates the identity of the vendor. SSL-certified websites can encrypt user data ‘on the go.’
For instance, credit card payments are not passed through payment gateways without the thumbs up from online address verification services.
SSL-certified websites receive instant validation. The card verification system adequately screens all purchases and prevents fraudulent transactions.
See Also: shopify dropshipping
Fraudsters often use fake locations while ordering products. The shipping address does not match their IP address. Vendors need to invest in e-commerce fraud prevention tools to keep track of such irregularities.
For experienced hackers, tracking the algorithm used to create generic permutations of passwords is very easy.
Hence, online vendors need to invest in stronger password-generating systems.
Having strict password requirements can hamper the shopping process. The customers, too, need to understand the importance of creating strong passwords as retailers aim to create hacker-proof online stores.
Chargebacks can be extremely frustrating for vendors. A high rate of chargeback requests can cause an e-seller to lose all revenue, or even worse, their vendor’s account.
Some chargebacks are inevitable. Transactions fail to process because of some reason. The customer demands a refund for the failed transaction. eCommerce websites are investing heavily to prevent such accidents.
But, chargebacks are also being widely used to initiate fraudulent transactions. Fraudsters use stolen credit card information to order items. Upon receiving the item, they claim a refund. Even if the refund request does not succeed, vendors have to spend time and money to dispute the chargeback claim.
Many regular consumers are also getting involved in chargeback fraud. They order products from vendors, and upon delivery, they have those items stolen by an accomplice. Then, they demand refunds from the vendor citing unsuccessful delivery.
Dealing with so many types of chargeback frauds can take a toll on online vendors. The best thing vendors can do to protect their revenues is to invest in a high-quality chargeback prevention solution.
The explosion of eCommerce has obliged vendors to invest in security tools. However, they must recognize that additional security measures come with increased friction during the shopping process. Steps such as two-factor authentication can encourage customers to abandon their carts.
That’s why investing in security measures isn’t enough. Vendors must keep updating their security measures to ensure frictionless consumer journeys. The best way to create perfect user journeys is investing in cybersecurity experts who offer both the best software tools and regular servicing.
Investing in fraud management services makes life a lot easier for online sellers. These cybersecurity experts assess address all fraud transactions. Their constant updates as per the vendor’s business models make it easier for vendors to review chargeback transactions, cancel unauthorized refunds, and improve their private security databases.
Only 36.7% of global e-commerce platforms are PCI-DSS compliant. Far lesser sellers offer advanced security features. The ones who do will make the most of these pandemic-driven rises in demand for online goods and services!
First published on www.Techcody.com
This website uses cookies.