An e-commerce business must approach sales security vastly different from the traditional box office. Yes, both venues are going to have people try and take advantage; however, when all sales are done behind a screen, the invisible enemy becomes hard to detect. Especially at this time, as more and more people turn to the internet for their purchases, retailers should begin to consider how best to protect their assets and company.
What Is Online Fraud?
Consider the impact of ecommerce fraud. Someone steals another person’s identity and card number, using that to establish an account with your site. Then, the offender racks up charges. The store charges the card and sends out the items, thinking a lucrative deal came in. However, shortly thereafter, the carrier calls you, noting this is a false charge and that payment shouldn’t be made. You’ve lost time and money. The cardholder isn’t responsible. The lender isn’t responsible. The seller suffers.
Friendly fraud is also on the rise. In this case, a customer makes a legitimate sale; however, this same shopper then complains the package never arrived, demanding charges be dropped. It was mailed. It did make it to the door, but you can’t prove it. The sale is terminated, and you, the store owner, lose.
What Are Warning Signs of Potential Fraud?
There are a few telltale indicators that something is amiss, so your sales team can be on the lookout for the following red flags:
- Expensive or large purchases
- New customers with unusually high sales
- Data doesn’t match up with personal identification
- IP information seems off
- Strange delivery requests
Although not always a false sale, these may require a bit of investigating. With anything suspicious, be prepared to contact the credit company, seeking approval.
What Can Merchants Do About It?
While nothing can be completely prevented, sellers may place emphasis on reducing these issues. To do that, consider working with software that provides quick, efficient information. Address verification can help ensure that IP addresses and home addresses match up with the credit information. In addition, a chargeback management system could allow for instant communication with cardholder banks. With prompt responses and awareness, transactions can be changed or canceled before products are sent out in the mail.
Now is a time to increase revenue, seeking out new clientele and exposing them to your unique merchandise. Keep your virtual eyes open, and remain vigilant. Arm yourself to locate and fight off online fraud.