As sales increase over the holidays, the same goes for fraud cases. Last year, e-commerce fraud cases increased by more than 30% over the holidays. This fraud can cause great losses during the holidays.
Jason Tan, CEO of Sift Science, a trusted platform that offers a full range of fraud prevention and abuse products, said in an email to Small Business Trends: Successfully Fighting Fraud payment. The overall volume of transactions is increasing, as well as buyers' expectations for a fast turnaround time, forcing companies to review their orders more quickly. Fraudsters capitalize on this wave of activity to try to avoid detection. "
Fraud prevention tips by e-commerce
For this reason, it is essential that companies know how to minimize their risks, especially during the holiday season. Learn some of the essential steps to protect your business with these tips from Sift Science.
Learn how fraud is committed
Before you can hope to fight fraud, you must know what to watch for. There are some common methods that fraudsters use, from chargebacks to purchases made with stolen financial information. And protecting your business's sensitive data can be a major step in avoiding the negative effects of these fraudulent activities.
Tan says, "Fraud networks use sophisticated technology that hides their identities – such as IP proxies, mobile device emulators, and identity theft – and combines them with robots and machine learning to automate their attacks. They leverage information that can be found on the web, from stolen credit card packets to passwords and security issues, to targeting e-commerce companies during the busiest times of the year. . Equifax, Sonic, Hyatt and other recent data breaches make this data available to criminals. "
Investigating Behavioral Abnormalities
One of the best ways to protect your business is to be on the lookout for anything that comes out of the ordinary.
Tan said, "Some of the warning signs of fraud include high value orders, the purchase of expensive items, multiple transactions on the same card and the purchase of large quantities of a single popular article.
Using a system to prevent fraud
However, vacations are often a time when these anomalies occur even without any type of fraud. You do not need to jump to conclusions based on a sign.
Tan explains, "The average value of orders is increasing, and you see more people shipping gifts to distant places. That's why we recommend integrating a powerful fraud prevention system. Solutions that evaluate multiple real-time signals provide a strong defense for managing these nuanced fraud patterns. "
Tan says tools like Sift Science can help you separate normal holiday shopping habits from warning signs that might indicate more harmful behavior.
Check some cases manually
There are situations where you can not determine if you are dealing with a fraud or a real sale unless you are talking to the buyer yourself.
Tan suggests, "For gray area cases where you're really not sure if an order is fraudulent or not, you can still manually check by calling or sending an email to the user for to make sure that it really does belong to them. "
Do not turn away from real customers
It is also important, during this period of great activity, not to stick to fraud prevention so that you get rid of current customers. Be reasonable about the security features you have put in place to avoid making the purchase process too difficult or time consuming.
Tan says, "Make sure you are not so careful in preventing fraud that you accidentally refuse good orders! While fraud is definitely damaging, it can be even more expensive to block a good customer. Vacation shoppers do not have the patience to pass a series of security checks simply because they ship a jersey to their uncle in Japan. "
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