Why Should You Be Interested in Fraud Protection for E-commerce Businesses?

Your company’s long-term profitability will be strongly influenced by the effectiveness of the methods utilized to prevent credit card fraud. Are you the manager of a nationally operating retail chain? Are you a small E-commerce player and want to expand your services? Are you planning to open a boutique shop for your online business? In this case, your long-term success will rely on hiring a company specializing in fraud protection for E-commerce businesses.

High-quality E-commerce fraud solutions can protect your company’s financial data and minimize the risk that chargebacks could have on your enterprise. Moreover, by using professional fraud prevention programs, you can maintain the credibility of your services and benefit from your customer’s trust. If your business accepts a fraudulent payment from a bad actor who has used stolen credit card information, you could become liable for the transaction, and your brand could suffer.

By using the services of a company specialized in fraud protection for E-commerce businesses, you can comply with the relevant regulations for your field of activity, maintain the efficiency of the internal operations carried out by your staff, and eliminate misunderstandings with customers. Increased security against fraud attempts can positively affect your overall data security, prevent service interruptions, and maintain the continuity of your brand’s reputation. Do you need E-commerce fraud solutions? In this day and age, the answer is yes. High-quality fraud programs are a staple of well-run businesses and have become common among high-level enterprises.

What Scam Methods Are Utilized by Fraudsters? 

The global E-commerce industry is worth over $3.4 trillion. And that makes it a prime target for cyber fraud attacks and attempted scams. The main way fraudsters will try to defraud the systems your company uses is by using stolen credit card information. Your service users’ confidential information can be stolen in many ways, from card skimming to ATOs, made possible by obtaining private financial and login data through phishing.

If scammers get past the anti-fraud systems implemented by your company, they could subsequently file chargebacks for the purchased services and, in many cases, even succeed in their endeavors. In general, online transactions are more susceptible to fraud. And here, we refer specifically to CNP fraud, where a physical card is not required to complete a purchase. How can your company protect itself from these attempts? In short, by correctly implementing complex algorithms trained using AI neural networks.

Professional E-commerce fraud solutions involve verifying essential information in just a few milliseconds such as the user’s name, geographical location, past transaction amounts, or the device’s IP address from which the transaction was made. This information is then analyzed and given a transaction risk score following the implementation of a ruled-based scoring system. The algorithms behind this system will depend on the client’s preferences and the neural network used to create it. But as a general rule, any geographical anomaly or discrepancy in the traded amounts must be thoroughly checked.

How Is E-Commerce Fraud Different? 

E-commerce fraud is increasingly common, and exhibits increased versatility in how confidential information is obtained. Being an online domain, fraudulent transactions in the E-commerce environment originate from digital platforms and do not require the physical presence of a credit card. The anonymity of E-commerce websites works to the advantage of fraudsters who can mask their online identity, sometimes even using fake IP addresses so that the credit cards used do not attract the attention of the utilized prevention software. Does it work? In many cases, yes.

Not all sites use fraud prevention specialists for E-commerce businesses, and not all companies employ professional fraud prevention tools. Professional fraud prevention software can reduce the risk of successful fraud by up to 98% and keep your brand reputation high. Moreover, an AI-based fraud prevention tool will flag inconsistencies in the data received from the transaction, even if the user tries to mask their identity.

E-commerce fraud prevention solutions can analyze the digital trails left by fraudsters and upgrade the algorithm according to market changes. E-commerce fraud is not geographically limited and can affect anyone, regardless of economic status or proficiency in working with digital data. Anyone can buy stolen credit cards for less than £1 and use their data to defraud national corporate systems. Ultimately, it all boils down to being one step ahead of bad actors and investing the right resources in the appropriate tools for the job.

How Can E-Commerce Websites Prevent Fraud? 

The best way to prevent attempted E-fraud is to call on the professional services of specialists in fraud protection for E-commerce businesses. What can they check? For one, with the help of professional E-commerce fraud solutions, the specialists you call upon will perform an AVS verification of the credit card and compare the location of the transaction with the one registered with the credit card company. If there are inconsistencies, the transaction can be canceled or put on hold until a human operator can review the case.

Professional E-commerce fraud solutions can also ask the user for the CVV code on the back of the physical card or utilize machine learning to identify patterns in the transaction before they are visible to your firm’s staff. With the help of velocity checks, the specialists in fraud protection for E-commerce businesses will identify if multiple high-value transactions were executed from a single account, perform a behavioral analysis, and compare the data with the information gathered through neural network training. In addition, they will assign a potential fraud score for the transaction analyzed.

The Best Way to Prevent Financial Losses 

Using the professional services offered by specialists in fraud protection for E-commerce businesses is the most cost-friendly way to prevent disruption of your services and loss of brand trust. Professional E-commerce fraud solutions can be used to provide real-time monitoring of financial transactions, identify fraud attempts before they go through, reveal the actual location behind stolen accounts or credit cards, and be a tool to ensure that your profitability is not affected.

High-quality AI-based fraud prevention applications have become necessary for companies that want to keep their services or products at an optimal level. Given the resources fraudsters have at their disposal today, fraud prevention has become a chasing game, where the key is to be one step ahead of the adversary. Professional fraud prevention applications must be constantly updated to keep up with market changes, have a success rate of over 98%, and be cost-friendly to make economic sense even for start-up companies.

In many ways, working with experts in E-commerce business fraud prevention can be one of the best ideas you can have. And the expertise of the specialists you call upon will, over time, be essential to your long-term success. Is it necessary to invest in fraud prevention tools? Most likely, yes. Professional tools aren’t free, but their ROI will likely be higher than any other tool you’ve tried, at least for your brand’s reputation.