Card fraud is so rampant these days, especially on the Internet where the volume of online purchases through card-not-present (CNP) transactions has increased dramatically in recent years.
The United Kingdom recorded the highest incidence of CNP fraud with losses amounting to £620 million in 2016, a 9% increase from the previous year’s £568 million.
The same is true for Europe, particularly in Poland and Sweden where card fraud losses leaped by 10% and 18% year-on-year, respectively, according to the data of Euromonitor International and UK Cards Association.
As the eCommerce industry continues to grow, online retailers are likely to face bigger challenges as CNP fraud is expected to reach up to $71 billion globally within the next five years, says electronic payment service provider Verifi.
However, that shouldn’t trigger fear and paranoia among online sellers because there are ways to avoid being a victim which we list here.
Strengthen your security
Hackers know which websites to plant malware on, so make sure that yours is tightly secured.
Encryption and tokenization are really frustrating to fraudsters as these technologies replace a customer’s data with meaningless codes that hinder hackers from performing their malicious acts.
Add an extra layer of information
Scammers are in every corner of the Internet and there’s no way to know how close they are or when they will attack.
Adding a field for the card security code, which is found on the back of a credit card, to the checkout page of your eCommerce site will not only verify the identity of a cardholder but also keep feelings of paranoia at bay.
Use a machine learning mechanism
Artificial intelligence technologies not only predict what customers will buy but also capture their purchasing habits.
That explains how it can spot fraudulent orders resulting from the sudden change in the shopping behaviour of a customer.
Someone who would normally buy small-ticket items in your store may raise suspicion if they suddenly go for the expensive ones, like jewellery, in very short intervals.
Confirm orders before shipping
If they can easily steal people’s names, email addresses, and credit card numbers, cybercriminals will do well at intercepting packages using their modus operandi.
However, none of their schemes will work on a company that operates with caution.
Before you have an item delivered to the address of a customer, call them up and confirm their order.
At that instant, you will know whether it was made legitimately or fraudulently.
Even though your eCommerce website is high on the list of credit card thieves, you can keep it out of their reach by following these four doable tips.
What steps have you taken to protect your online business from CNP fraud?
Let us know in the comments section below.
To your continued success,
Dave & Matt