(Newswire.net — May 27, 2022) —
Payment fraud affects thousands of organizations each year, and it isn’t going away anytime soon. Fraudsters are becoming increasingly clever, and firms must put in place procedures to defend themselves from their increasingly effective approaches. Thankfully, we have a plethora of tools at our disposal to combat payment fraud. As a CEO, you should work with your employees and train them how to spot potential fraud signals and avoid fraudulent payments. Let’s look at some tips for you to reduce payment fraud in your business which will save you money in the long run.
Track IP addresses and compare physical addresses to billing information
If you find that an order’s “ship to” and “bill to” addresses differ, proceed with caution. Although this is not necessarily a signal of fraud, it is nonetheless a warning indicator. You could also check the IP address to the information on the credit card. Be cautious if there are any differences. Change your payment settings to prevent particular IPs from purchasing from your site. This might be used to ban IPs from countries where you don’t ship.
Safe payment strategies
The first step is to ensure that you are only using secure payment methods. If the majority of your sales are conducted online, ensure the system you’re using has enough security safeguards. It must also have a proven track record of successfully resolving merchant issues.
Obtain as much information as possible from your customers
Forcing potential consumers to register and provide personal information before they can make a purchase on your website may be a double-edged sword. On the one hand, it may have a negative impact on conversion rates, but it will also allow you to dramatically minimize the amount of fraudulent payments you get.
You must decide whether the decrease in conversion is worthwhile. If you’re receiving a lot of fraud and it’s costing you a lot of money, this is something you should think about because the cost of a few missed sales is much less than the amount you’re losing to fraud.
Measures to boost verification
Strong Customer Authentication (SCA) is a new European regulatory standard part of the PSD2 initiative to reduce fraud and increase security. It requires additional authentication steps at checkout. Companies can take note of the new requirement in Europe and apply additional verification steps to their own checkout funnel to reduce the risk of fraud.
Advanced authentication techniques might, for example, allow you to verify that the individual making a purchase with a mobile phone is the true owner of that phone. You may even ask the customer to authenticate using voice commands or fingerprints. It will be quite difficult for anyone to cheat you if you have robust authentication in place and execute everything right.
These are all basic measures you may take to reduce payment fraud. Always strive to improve the security of your website, and teach your personnel to detect fraud efforts quickly.