According to BusinessWire, last year online retail fraud attempts grew up by 30% and it’s terrifying to imagine how much they will increase this year, above all for year-end festivities. It’s difficult for small eCommerce sites to stop online fraud and to keep up with its trends. It is with that perspective that OZON invite you to scroll down this page and read 8 of the most reliable eCommerce fraud prevention tips that prevent risky transactions and secure online merchants against revenue losses.
Prevent eCommerce fraud from occuring
The best scenario for any eCommerce retailer would be to prevent fraud from occurring in the first place. If only one or two of these signs are present, this may not be a cause for concern, but if several are identified in a single transaction, the merchant should investigate and verify the validity of both the card and the cardholder before processing the payment.
- First-time shoppers: criminals are always looking for new victims. Once they commit a fraud at one merchant, they usually move on to another and never come back.
- International orders: certain countries from Asia and Africa are known to have higher instances of credit card fraud. International credit cards also can’t be confirmed via the AVS system.
- Contact the customer: the best fraud prevention is actually calling the phone number on the order. Be wary if the phone doesn’t ring, or you get a computer message that the number is unavailable or out of service or is no longer valid.
- Big-ticket items: big-ticket items have high resale value, maximizing the fraudsters’ profits.
- Larger than average orders: stolen payment cards have a very limited life span so criminals need to make a quick use of them. Large-size orders are one way of doing that.
- Orders for several items of the same kind: just as with larger-than-average orders, purchasing multiple items of the same kind is a way of maxing out stolen cards as quickly as possible.
- Multiple shipping addresses: similarly to the previous scheme, a card may be used multiple times in a short amount of time with the orders going to several shipping
- Keep up on social: always monitor social media as Twitter profile or Facebook page because often customers discover soon potential threats or security bugs.
The difficulty of keep up with fraud methods and trends
This advice allow you to identify a part of fraud attempts, but not all. Without forgetting that Internet Retailing magazine reported on a study that discovered 50 percent of online retailers said it is difficult to keep up with fraud methods and trends. Are you ready to lose money because of online fraud? Certainly not!
That is why OZON has developed a cybersecurity solution that easily stop online fraud with no technical skills needed. With this cloud-based solution, combining machine learning and big data, each customer has the benefit of an equivalent anti-fraud team, plus automation, full availability, device geolocation and device identity check. This technology is able to identify new fraud techniques in real time.
In the next article, we will explain how OZON’s anti-fraud system is working and will present our PrestaShop and Magento anti fraud module.
Meanwhile, do you have other advice to share with us on how to tackle fraud? We will be happy to implement it in our article.