Tips to help minimize ecommerce fraud

Data protection and security are crucial not just for protecting customers, but for protecting business owners as well. Right now, digital payments are in high demand and cybercriminals are actively scoping out websites and checkout forms looking for vulnerabilities to help gain access to valid credit card numbers and merchandise for free. For the merchants that offer online payments, eCommerce security is of upmost importance to protect themselves.

What Merchants Can Do to Minimize eCommerce Fraud

To help merchants reduce their website’s fraud risk, here are six best practices to help prevent eCommerce fraud.

1. Enable Fraud Protection Tools – Use a payment gateway that offers fraud protection tools. At a minimum, the following filters should help reduce fraudulent attempts and collect as much data as possible.

  • Velocity filter – prevents card runners from testing cards on merchant accounts
  • Card Verification Value (CVV) filter – requires customers to enter the 3- or 4- digit code on the back of the card (on the front for American Express)
  • Address Verification filter – verifies that the billing address and zip code provided during the transaction match what the issuing bank has on file
  • Unmatched Refunds – stops refunds from going back to cards that did not have the original sales charge on them

2. Pair CAPTCHA with Hosted Payment Form – Completely Automated Public Turing test to tell Computers and Humans Apart (aka CAPTCHA) asks customers to identify a combination of letters and numbers or to classify pictures to complete a transaction. Adding this fraud protection method to an eCommerce site provides an extra layer of security that reduces the risk of counterfeit transactions.

3. Maintain PCI Compliance – Any merchant storing, processing, or transmitting credit or debit card information must adhere and comply to ongoing standards set forth by the Payment Card Industry Security Standards Council (PCI SSC) on an annual basis. These standards were established to help ensure the security of customers’ credit card data within merchants’ payment environments, including eCommerce websites.

4. Keep Platform and Software Up to Date – By keeping eCommerce websites and back-end data up-to-date with the latest security patches, merchants reduce the risk of exposing vulnerabilities to potential hackers. Additionally, install and regularly update anti-malware and anti-spyware software developed for businesses.

5. Monitor Transactions and Reconcile Accounts Daily – Fraud happens daily, and that’s why merchants need to look for suspicious transactions, such as small amounts or mismatched shipping and billing information. Staying on top of this and notifying the merchant services provider and bank as soon as something out of the ordinary pops up will help minimize any potential damages.

6. Stay Educated on the Latest Fraud Tactics – Cybercriminals are always searching for new ways to work around secure technology and invade a merchant’s payment environment. Merchants need to stay on top of the latest payment security news by subscribing to industry journals and blogs regarding this subject.

Is your ecommerce site secure? Chamber partner i3 Verticals Merchant Solutions will take a look for you. They offer members of the Dayton Area Chamber of Commerce a free estimate on services. Reach out – there’s nothing to lose! Learn more about i3 Verticals Merchant Solutions.