Majority of the consumers prefer to shop online these days. Taking heed to their needs businesses are now increasingly opting to move their operations online. But the threat of cyber-crimes and credit card fraud in online retail is substantial. In 2018 businesses suffered combined losses of 31 billion dollars due to identity fraud. Consumers and businesses suffer in their own way due to fraud and have detrimental costs to their finances as well as reputation. Both these entities need to take proactive steps in order to protect themselves from online fraud. Some tips and tricks that they can adopt for fraud prevention will be discussed in this blog.
Tips for Consumers to Avoid Online Fraud
People are often being warned to protect themselves from identity theft scams through various sources. Governments, banks, and businesses generally tend to issue informative resources for the public to make them aware of commonly used internet scams and fraud. They also often tend to issue some precautionary measures that should be observed by people commonly in order for them to avoid card fraud;
- One should avoid sharing personal information on social media websites. Try not to share details that include details to the security questions to your online accounts.
- Credentials including your age, date of birth, phone number and other essentials should also be kept private.
- Never click on any links provided in e-mails. Always access your online accounts by entering the URL to the website in your browser’s address bar.
- Do not give out details of your banks accounts including account or credit card numbers, passwords and PINs over the phone. Banks and government officials never call people to ask for any such information. Such social engineering scams are designed to trick unwitting customers into giving their personal details.
With the obvious advancement in technology scammers and credit card fraudsters have found more intricate ways to bypass online systems. In this case, fire needs to be fought with fire. Companies need to come up with equally tech-savvy solutions that are productive and effective against fraud. At their end, online merchants should be vigilant against credit card fraud and adopt some precautionary measures to avoid it.
How must businesses prevent credit card fraud?
In a consumer-driven atmosphere, businesses have to be careful about each and every transaction that takes place in their domain. The use of chip and pin cards have made credit card transaction safer to an extent. However, there are still ways like card skimming and ID theft, that can be used by fraudsters to steal from businesses. Therefore, techniques like transaction monitoring can go a long way to prevent credit card fraud. Some warning signs that every e-retailer should look for include;
- Always verify if the billing and shipping address for a transaction are same or different. Fraudsters tend to ship products to their own addresses while sending the bill to the card fraud victim’s registered address.
- Businesses must be aware of the average order amount for their business. Any order above the average amount should be checked for suspicion of fraud.
- Always verify the address of your customers using a verification service provider. If the address cannot be verified, make sure to call the customer to check if the order is authentic.
- Fraudsters tend to be in a hurry to utilize stolen credit cards or credentials. In doing so, they requisition large orders or put a rush on deliveries. Such warning signs should always be scrutinized further.
How Modern Tech is Helping in Fraud Detection
With a humongous amount of transactions coming in, it is impossible for businesses to monitor and verify each transaction. Thanks to the advancing technological landscape, there are a number of fraud detection and prevention tools available. Technologies like artificial intelligence (AI) and machine learning are now being increasingly used to develop solutions that can verify customers in real time.
Tools like transaction monitoring systems are being used to detect anomalies in customer data. Such systems are being implemented by banks and financial services institutes to monitor customer data and detect any suspicious behaviour. Dynamic protocols are implemented to improve the system’s cognizance and make it more effective for implementation. Big data analysis is also used to detect consumer behaviour patterns and predict suspicious activities.
Other AI tools include verification systems that can identify a customer’s identity in real time. Such tools scan a person’s documents like ID cards and credit cards to verify their authenticity. They can also use facial recognition tech to authenticate if the customer is who s/he says they are.
Always be Responsive to Credit Card Fraud Victims
It is not just about the efficacy of your tools. Businesses need to empathetic towards customers if they experience credit card fraud through their channel. 49 per cent of consumers tend to abandon a retailer if they have been affected by fraud through their store. The foremost precaution you need to take is to report it to the authorities. You should respond to them and try to resolve their case as soon as possible. Provide your customers with any assistance that you can and compensate them in the best possible way.
Allan Jeff is a technology enthusiast who is perpetually amazed by the potential of different technologies to affect the life of a common human being. This mesmerization with tech has led Allan to learn more and more about the latest tech trends and share his in-depth analysis with his fellow tech enthusiasts. Tech products using Artificial Intelligence, Machine Learning, and fraud detection are a special focus.