SMBs can efficiently address payment fraud by obtaining a holistic view of activities and processes with a standardized strategy that reaches across all business lines.
FREMONT, CA: Small and medium-sized enterprises are particularly susceptible as they lack their bigger counterparts' economic and employees resources. They also frequently use fundamental, out-of-the-box instruments that are not tailored to their particular company and trends, leaving the door open to fraudsters to launch heavy and rapid assaults that go mainly unnoticed until it's too late. According to Experian's Global Fraud and Identity Report, fraud is a significant problem for 72 percent of companies. Still, measures can be taken by SMB etailers to verify the identity of a customer.
Adopt card-verification technologies
Tools such as CVV verification and 3-D Secure are strictly concentrated on intercepting fraud attacks on identities. They serve as a checkpoint against fraudsters who impersonate a cardholder by trying to check two stuff: the identity of the person making a purchase, and the physical ownership of the card by the person.
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Apply close fraud screening.
By generating more complicated, vibrant laws for fraud filters, merchants can safeguard themselves from fraud. This will allow the passage of valid transactions, but flag suspect sales will be manually checked. So-called high-risk transactions—typically more manual review will be required.
Use delivery confirmation and signature confirmation.
These tools can prevent fraudsters, particularly for high-value transactions, who do not want to be connected to a particular address. Confirmation of delivery may also be helpful as compelling evidence if a transaction develops into a friendly chargeback for fraud, as it shows that a client has received the item.
Seek out expertise in loss prevention.
A merchant wouldn't attempt to build their own e-commerce or processing account because it's not their expertise area. Likewise, some revenue-retention procedures are best addressed by professionals, such as chargeback representation and risk mitigation. Partnerships with third-party support services will enable merchants to concentrate on where they are more efficient.
Embrace Two-Factor Authentication.
Two-factor techniques are among the most efficient ways of stopping fraudsters, and may even make checkout for shoppers simpler in some cases. Consider, for instance, mobile payment technology. This instrument needs a user to unlock their phone and then use biometric technology to authorize a payment. It is two-factor, but at the same moment, it simplifies checkout.
Organizations need to adopt all of these techniques and remain on top of evolving trends in identity theft and the myriad other types of fraud. This is the only way to safeguard the company efficiently.