Ecommerce, which is commercial transactions conducted online for the purchase of goods or services, has been in growing demand since the dawn of the internet. Fraud, on the other hand, has been around long before e-commerce was ever thought of. Merchant credit card fraud, for example, has been around nearly as long as credit cards. Luckily, there are many ways to protect you and your business against e-commerce fraud.
There are quite a few types of fraud, but the two most common are known as friendly fraud and clean fraud. Friendly fraud occurs when your customers initiate chargebacks for products they claim they never received, when they likely already did. Clean fraud, although more difficult to pull off, consists of customers using stolen or fraudulent credit cards to make purchases.
Identifying A Fraudulent Order
As long as you are able to stay on top of the orders that come into your business, you will likely be able to quickly avoid fraudulent orders as they come in. For example, be on the lookout for first-time shoppers who make large orders with fast shipping to unusual locations. You can also check if the shipping or billing address matches the IP address from where the order comes from.
Most business owners have some sort of merchant fraud protection to help prevent fraudulent cases from occurring in their business. You can also prevent fraud by keeping all of your software up to date, especially if that software is what processes payment for your customer’s transactions. Additionally, have clear policies for returns or refunds set up on your store page.
Protecting you and your business against e-commerce fraud may seem daunting, but it is definitely an easier process when done with trusted providers. Keep in mind that it is often best to work on prevention before the fraud happens. If you have more questions or concerns, be sure to reach out to a professional.