The Top Fraud Prevention Strategies for eCommerce

Tuesday, December 24th, 2019

With e-Commerce sales projected to reach $630 + billion by the year 2020, online fraudsters are constantly evolving and using more sophisticated methods to hack their way through online businesses, posing catastrophic threats to bottom lines.

The digital landscape we find ourselves in is definitely a vulnerable one, which requires effective eCommerce security for online business.  The cost of doing nothing is astronomical, as the projected sum of eCommerce fraud losses will be up to $12 billion by 2020.

Luckily, you don’t need to be the next victim. Here are some fraud prevention strategies for eCommerce that will give you the security and peace of mind to go about your business.

First, let’s start with a few foundational and basic essentials that all online businesses must have:

1. Address Verification System –  or (AVS) is what helps secure your online business by verifying the customer’s billing address. Determining whether it’s the same as the credit card company’s records.
2. Follow PCI Standards – PCI or Payment Card Industry lays out security regulations that every eCommerce company must follow. By following these standards, you are ensuring that your transactions are more secure. If you don’t follow PCI standards, you could face a hefty lawsuit, along with becoming a victim to eCommerce fraud.
3. Set Strong Password Requirements – It may be frustrating, but having restrictive password requirements, (inserting different types of characters in your password), is a great way to protect your customers and your business. Using a complicated password reduces the probability of being attacked by hackers.

Now that we have covered the basic, foundational elements that are crucial to protect your eCommerce business, let’s take a look at some valuable fraud prevention tools to safeguard your business with not a lot of effort.

1. Subuno – this is a fraud protection platform that comes with 20+ fraud protection tools. It allows you to see your customer’s location, enquire as to whether their details match, and validate how long their email has been used, etc. Their algorithm is equipped to analyze 100+ risk factors to secure your business from fraudulent orders.
2. Riskified – this platform offers great anti-fraud services such as real-time insights using cutting-edge machine learning algorithms. It provides analytical methods such as IP and geo-location. They also offer proxy detection, social media, order linking, device and browser fingerprinting, and chargeback fraud tools.
3. Fraudlabs Pro – this platform offers 40+ validation rules for effective eCommerce fraud screening and numerous blacklist records contributed by many international merchants. You can start by using their free plan which accepts up to 500 queries per month and supports different types of order validation. If you are subscribed to the paid plan, you get email validity check and social profile query, just to name a few.
4. Dupzapper – Taking only 15 minutes to set up its HTML tracking code on your site, you can then have access to the latest device identification and fingerprinting technologies. Its smart machine learning algorithm can trace the geographic consistency data registration, detect cookie blocking attempts, and suggest the use of proxy.
5. Kount – Kount conducts fraudulent checks using advanced AI technologies, device ID, geo-location, order-linking features, etc. It also has an easy-to-use interface. All the information is visible on a single screen, that way you won’t need to switch between different interfaces.

In Conclusion

Fraud prevention for eCommerce should never be an afterthought in today’s online business landscape. With so many tools and strategies available, it’s a matter of wading through the information and choosing what methodologies would work best for your business.