10 Ways Businesses can Protect against Fraud

Managing payment fraud is a priority for merchants and retailers throughout the world, as the 21st digital economy continues to transform the way consumers shop. With online sales, all online purchases are recorded as transactions whereby the consumer is not present in-person, thereby presenting online businesses with a unique challenge.

Rest assured, though, that online fraud can be mitigated by taking proper security measures and being alert to red flags that may signal fraud.

Below are 10 easy ways businesses can bolster their fraud protection to protect both your assets and the identity of your customers.

Bolster Your Security

Security of your e-commerce processes and that of your entire website should be given proper attention beyond the individual transaction. Small business websites are seen as softer targets than of larger organizations, and cyber-attacks on them are increasing daily. Your services and systems should be PCI-compliant in every step of transaction process.

Tracking Numbers

A tracking number helps prove a package was delivered. In the case of determined criminals, though, it may not protect your business. Nevertheless, it may help if there is a dispute between you and a legal customer who denies that he has received the packet. A signature upon delivery should be mandatory for goods which higher more.

Security Codes

This 3-digit number is printed on the back of most credit cards. If it is an American Express card, there will be a security code of 4 digits printed on the front of the card. It cannot be as easily retrieved by thieves unless the card is in hand. Further, the code is not stored on the magnetic strip or embossed on the card.

Restrict Declined Transactions

According to experts, when fraudulent transactions are attempted by the scammers, it may be possibly through a malicious software script. In this process, many credit card numbers are tried continuously. Every declined transaction will incur fees for you and thus it is better to set the limit for a card holder to enter an incorrect credit card number. Such customers should be banned if they exceed the limit.

Fraud Profiling Services

Utilizing a fraud profiling service is another option, though it may not be necessary for every online store. Previous purchases, names, IP addresses are cross-checked by these services. You can identify high risk transactions, which these companies provide you with a more informed assessment around each transaction after studying per-purchase behaviors.

Credit Card Number Logs

Whenever a customer attempts to enter a credit card number, keeping a log of is good, experts recommend. It is likely to be fraud, if the number of times is five or more. The batch transactions for the day are encountered by most credit card processors. Multiple card numbers will be used by scammers in many attempts. Keep vigilant regarding this trend.

Address Confirmation

Whenever a suspected transaction arises, the billing or shipping address should be monitored. Tools are available to facilitate this process. In order to find out whether an address is legitimate, experts believe that you should use Google maps or Zillow to confirm it. Address verification process also is provided by payment services, which can be utilized to find out whether the person is living the address provided.

Suspicious E-mail Addresses

Some e-mail addresses can be a dead giveaway tipping you off you’ve received a fraudulent order. When an order is packed, the e-mail should be evaluated closely.

IP locations

Overseas transactions where IP address and billing address are not in sync can signal a fraudulent transaction. The shipping address and billing address also should match as well. If they do not, you are likely encountering a fraudulent transaction. In addition, applications such as IP lookup.net can be used to alleviate this issue greatly.

Shipping and Billing Addresses

If the shipping and billing address differ and the customer is demanding expedited shipping, you likely are encountering a fraud transaction. However, different addresses are also not a sign of fraud, given the circumstances. If the addresses do not match, you should confirm that the phone numbers match, especially for large orders.


Top 5 Credit Report Services Sites