Are you feeling the rush of more traffic, more orders? How about stress? Regardless of whether it’s a sale, a holiday, or an event, a spike in the number of guests to your site can put a strain on your operations. Also, there’s one related risk that even the most persevering retailers may not budget into their preparations: expanded fraud.
Unfortunately, helps in traffic and sales often go hand-in-hand with a rise in fraudsters. But the monetary pain of ecommerce fraud – chargebacks and their related fees – frequently doesn’t come until months after the real fraud happens. Because of this, Finding a way to protect your online store may feel less urgent than, say, setting up the promotion campaigns that will drive all the traffic in the first place.
However, there are things you can do now to decrease your chances of fraud and decrease your workload from here on out. Here’s a practical fraud protection plan intend to keep your anxiety levels low.
Dedicate Someone to Monitoring Fraud
Consider giving one of your employees the task of raising a red flag on some type of fraud orders during high-traffic periods. Sometimes the least difficult and most obvious signals can be effective identifiers of suspicious users, as first-time shoppers or overnight shipping. It might make sense to have somebody on your customer experience or customer support team on the lookout since they’re as of now reviewing individual orders.
Obviously, not every brand new customer who needs something in a rush is out to scam your business. To keep from incorrectly denying orders dependent on limited criteria, the individual tasked with fraud monitoring would profit from utilizing a tool that can compare customer identity and behavior against a network of known terrible and good users –– and then give a real-time score based on how risky the customer is.
Maintain a Customer-centric Approach
The latest discoveries from Javelin Strategy predict that almost $118 billion of authentic orders are incorrectly dismissed every year by credit card companies and retailers who mistakenly flag them as a fraud. What’s more, that doesn’t consider the majority of the orders that are delayed because the merchant is checking the shopper’s identity.
The results of misidentifying a decent customer as a fraudster and blocking or delaying their order can have enduring and unexpected side effects. In addition to the fact that you lose that sale, however, you risk losing future deals from that customer if they’re troubled and disturbed. And they could share their experience with family and friends, or with the public on social media.
While the possibility of a tidal wave of fake orders may make you need to batten down the hatches, sure regardless you’re still optimizing for endorsements so you’re keeping your customers upfront. As a bonus, this methodology will likewise benefit your sales figures!
Brush up on the Basics of Fraud
Fraudsters are sophisticated, sorted out and move quickly, yet they frequently repeat tactics.
Here is some common kind of online fraud:
E-gift card fraud: Thieves use stolen credit card details to purchase online or digital gift cards and rapidly drain them for cash or to purchase merchandise
Re-shipping fraud: Criminals who live in a different country than the billing address of the taken credit card enroll somebody from within the cardholder’s country to get and reship the product to the final destination.
Card testing: Fraudsters test whether bunches of stolen credit card numbers are valid by making small purchases online.
Referral fraud: Fraudsters set up fake accounts to abuse a merchant’s loyalty program or referral
Research firm eMarketer predicts that ecommerce sales will cross $79.4 billion in the upcoming holiday season, an outlook that may sound both exciting and overwhelming. But, a bit of preparation can go far. You have enough to consider when preparing for high-traffic times –– fraud shouldn’t be another headache.
Likewise, remember that the sales cycle doesn’t complete when the consumer clicks “Buy”. Consider how your fraud prevention tactics influence the customer experience so that even as you’re keeping fraudsters out, you’re making it as simple as feasible for your good customers to do precisely what they need: purchase from your e-commerce store.
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