Online fraud can be a major issue for online retailers. Online fraud is different from regular retail fraud. In a brick and mortar retail store, criminals may use a variety of tactics to steal or commit fraud against a company. This can involve removing the magnetic tags and walking out of the store with an item, returning and item that the person never actually bought, etc.
Online fraud involves the same concept – attempting to obtain items or money from a company without actually paying for it. However, the methods used in online retail fraud are different from those with brick and mortar fraud.
Here are some ways that ecommerce stores can protect against online retail fraud.
1. Send email notifications after purchases
If a person is notified by email after their credit or debit card is charged for a purchase, then it can help to prevent false purchases from being made on their account. So, make sure you send all of your customers automatic email confirmations after they buy something on your ecommerce site.
2. Use up to date firewalls
Firewalls are an excellent cybersecurity measure. You should always make sure that you are using a firewall, and that that firewall is up to date. Good firewalls can go a long way toward making sure that your customers’ data is not stolen. If your customers’ data does get stolen, then it can be a real nightmare for your business, and for your customers. So, it is better to try to prevent that from happening with a good firewall.
3. Verify the cardholder’s information
This includes both the cardholder’s name, and mailing address. You can use an electronic identity verification, or EIDV service. These services are comprised of reliable databases that can help you verify whether or not the person making the purchase is the actual cardholder.
4. Look for suspicious purchases
For example, if you notice that someone is making an usually large purchase from a foreign country, but they list their address as being in America, this could be a definite warning sign. If you notice a suspicious purchase, then you can take steps to investigate it further.
Online retail fraud can be a major hassle for both businesses and customers. Chip cards have significantly reduced the amount of fraud that takes place with credit cards. However, fraudsters are always looking for new ways to commit fraud. So, it is best to do what you can to try to protect yourself and your business. The tips in this article can help you protect against fraud!