Fraud prevention for online purchases is a matter that is progressively gaining traction and enhanced significance. What is the reason? Each day businesses are faced with emerging threats that did not exist previously. To compound matters, new online fraud is substantially different from common day-to-day fraud that regular enterprises are accustomed to.
Notably, TD bank in the US recently made a startling revelation regarding the extent of damage caused by online transaction fraud. This further underscores the need for online business merchants to give the matter more attention.
JJS Global Is Committed to Keeping Online Business Merchants Safe from Emerging Cyber Risks Beyond 2020
In its report, TD bank revealed that 44% of stakeholders serving within the financial sector had identified fraud in the online payment system as the greatest threat facing online retailers in 2019.
This is one of the most notable red-flags raised by expert financial insiders. Interestingly, the experts are privy to the finer workings of online business above what the ordinary merchant knows. Indeed, the statistics presented showed that incidences of online fraud increased by 14% from 2018.
The damage inflicted by fraud in online businesses is startling. For instance, E-commerce businesses lost a whopping $6.7 billion in 2016 alone. This represented an increase of 33% compared to 2015. It is estimated that online businesses will incur a loss of $7.2 billion by 2020. Damages resulting from chargeback effects alone will amount to a whopping $25 billion.
Happily, there is something online merchants can do to protect their businesses from going down in a heap of ruins. The latest software that can be used to detect fraud before it happens. This is welcome help coming at the right time. We, at JJS Global, are happy to help online merchants recognize the worst types of cyber frauds facing them to formulate effective measures to deal with it.
JJS Global Is Committed to Helping Online Merchants Prevent Payment Fraud
The following risks commonly beset modern online business merchants:
- True fraud.
- Phishing.
- Chargeback fraud.
It is essential to understand the most likely type of fraud that your business, by its nature, faces. Each of these types of fraud can be detected using particular methods. Online stores have the option of using both external and internal systems to protect their valuable investment from risk.
Here are some common risks:
True
This occurs due to the prevalence of data breaches and their impact on crime. It is also referred to as identity theft.
True fraud occurs when a criminal steals your data and uses it to commit a crime, including placing fraudulent online orders with your credit card information. It is commonly known as identity theft.
Take action:
- Record every user’s IP address.
- In case of suspicion, compel the user to verify contact information.
- Beware of purchasers requesting for overnight shipment.
- Use a card verification value (CVV).
Phishing Attacks
About 91% of cyber-attacks originate from phishing. This is known, in layman’s terms, as account takeover. It happens when a criminal gains access to someone else’s personal information and payment account. If you use an easy security question or weak password, a scammer might guess, get it right, and easily do online shopping with your credit card.
How to Act:
- Use Google Cloud or AWS routinely.
- Utilize Google alerts.
- Use the latest security software.
- Set stringent password requirements including updated passwords regularly.
- It is recommended to use only password-secured networks.
Chargeback Fraud
Chargeback fraud is also called friendly fraud. From a seemingly legitimate transaction, the fraud typically takes place when the purchaser lodges a dispute after the sale is completed asking for a refund or chargeback and does not return the item. A merchant loses between $20-100 in such fraudulent transactions.
You can take these steps to protect your business:
- Put a blacklist on purchasers requesting chargeback.
- Use ethical business procedures.
- Provide accessible and reliable customer support.
- Introduce automated checks in the order management system.
- Shun delays in shipping by tracking online transactions.
JJS Global Offers Useful Tips to Online Merchants on Effective Prevention of Data Breaches
Note that these measures may not provide foolproof protection to prevent credit card fraud or similar data breaches. You need to bolster such tactics using effective complementary mechanisms.
JJS Global wants to help online merchants engage in the safest business practices while preventing all types of fraud. Send us an email today at info@JJSGlobal.net or call us quickly at: 224-535-9462. We will get back to you right away with further tips on how to stay safe while conducting a thriving online business.
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