The shift to online commerce is steadily growing with every year. This is exciting for online retailers but it does come with the risk of fraud. Billions of dollars are lost each year due to fraud so it’s an extremely important problem. The innovation of chip EMV cards is helpful for physical store locations but perpetrators of fraud have found clever ways to bypass that security online. Protecting your business is a delicate balance between fraud detection and a providing a pleasant customer experience but it can be done with these tips.
1. Implement Multiple Detection Tools: Address verification is a fine tool to help detect fraud but it is not enough. You’ll need to add a few other tools to adequately combat the problem. Multi-factor and device authentication along with 3D secure payments are great additions. Be careful not to add too many as it may inhibit the experience of your actual customers.
2. Collect Data: It’s crucial that you collect data that will help you determine if any activity is abnormal. Follow the trends of your customers. If you notice that a customer typically opts for free shipping then suddenly chooses a method with large shipping costs, you may way to do some further investigating.
3. Stay Updated On Fraud Trends: Make sure you keep track of the latest trends in fraudulent attacks. Track the items that you usually see targeted for fraud. This will help you be able to more accurately identify fraudulent activity without interfering with customer experience.
The ease of online business does come with some challenges and protecting yourself from fraud has to be carefully done. Use these tips to ensure you stay vigilant and use detection tools to make sure you don’t become a victim. It’s a delicate balance but you can safeguard your business and provide a pleasant experience for your customers.