- Dec 07, 2021
0- by A2 Security Team
Fraud is widespread during the holiday months with the increase of significant sales and high traffic volume. That’s why it’s essential that, as an e-commerce professional, you recognize the signs of fraud and know how to avoid it. In this blog we will cover:
- Common signs of eCommerce fraud
- Easy ways to prevent fraud
Red Flags for eCommerce Fraud
It’s hard to believe that your business is not immune to eCommerce fraud. However, the truth is, even if you take all precautions and employ best practices, there are still risks for your company. That being said, it is always important to educate yourself on signs of impending fraud so you can work on preventing any issues as they pop up: Here are some of the most common signs of fraud to look out for:
1. More Than One Card on an IP Address
An IP address with multiple cards can be a red flag. To avoid being caught, most fraudsters will attempt numerous transactions with the same card.
2. Large Quantities of Your Product Are Being Purchased
If you offer a product with high demand, it’s expected to have larger and more consistent purchases. However, large quantities purchased from multiple locations by the same person or group can indicate fraud.
3. Shipping to Unusual Locations
If the shipping address does not match the product, this is a red flag. This could mean the person is ordering with a stolen credit card.
4. Different IP Address Compared to the Shipping Address
If the person’s IP address making the purchase differs from their location, this is a red flag. Most likely, this person uses a VPN or other service to hide their location. Also, keep in mind that the billing and shipping addresses may be different.
5. Many Transactions in a Very Small Period
Multiple transactions in a short amount of time is an indication that something could be wrong. Fraudsters usually test your business with small purchases before making larger purchases.
Ways to Prevent Fraud
As a business owner, it is your responsibility to prevent fraud in any way possible. There are many ways you can do this, and we will go over the most effective methods below:
1. Analyze and Assess Fraud Risks With Fraud Assessment Tools
Fraud assessment tools will allow you to assess your risk for fraud. This can be done in real-time and provide information about the likelihood of fraud occurring.
2. Update High-Quality Software Helping You Run Things
If you’re using software that is not up-to-date or effective, then it can open your business to fraud. You must have high-quality software that is constantly being updated.
3. Download Fraud Detection and Management Software
Fraud Detection and Management Software is the only way that you can truly protect your business. Whatever software solution you choose, make sure it’s designed to monitor transactions in real-time so that any fraudulent activity will be detected immediately.
3. Keep PCI Compliance
Disregarding PCI compliance is a huge risk. If you are not following the rules, your business can be liable for any credit card fraud on their website or store. This means that you could have legal issues to deal with and loss of revenue and reputation if it’s determined that your negligence led to fraudulent activity.
4. Use RBA (Risk-Based Authentication)
RBA is the only way that you can truly verify someone’s identity. This method ensures that all customers need to provide additional information before they purchase in order for it to be approved.
5. Require CVV Numbers on All Purchases
Requiring CVVs on all transactions can be a huge deterrent for fraudsters. This is because they only tend to make purchases with stolen credit cards or through online retailers that don’t require this information.
6. Use HTTPS Protocol
Using the Hypertext Transfer Protocol Secure will ensure that all of your transactions are encrypted. This prevents any potential hackers from gaining access to your data, and it also provides another layer of security on top of SSL certificates.
7. Use AVS (Address Verification System)
Address verification ensures that the billing information and shipping address match up. If they don’t, this can be a red flag for fraudsters who use stolen credit cards or purchase goods online without having them shipped.
Conclusion
Another great way to avoid fraud is by ensuring a high-quality web hosting company hosts your website. A2 Hosting offers secure and dependable service, so we’re here for you if something goes wrong. With 24/7/365 support and a 99.9% uptime commitment,+*969* we’re available for our customers when you need us.
Our sales teams will help you choose a plan that’s perfect for any business size. Let us take care of everything so that you don’t have to worry about anything but growing your business. Contact us today!
