Many companies doing Cross border eCommerce and customers shopping online can come across with fraud. Online fraud, which is indispensable in the digital age we live in, can cause big loses both for companies and customers. There are various ways to prevent fraud especially while shopping online with a credit card. Both Cross border eCommerce and eCommerce companies should check for fraud and consider the measures accordingly.
Fraud in eCommerce
Preventing fraud eliminates the possible risks for your customers while it also assures the security of your website and your brand reputation. Fraud has dramatically increased over the past years, and it tends to show itself in different ways. Fraud can be done both online or offline through credit cards to aggrieve the individuals or businesses.
One of the most common ways of fraud is shopping with cloned credit cards. When the real owner of the cloned card claims that they are not responsible for the shopping activity, payment is reimbursed to the person who has been aggrieved and the ecommerce website is damaged. With its loss of prestige, the responsible company is forced to take action against the fraud.
Protection from the Fraud
Companies providing secure payment systems to their users would want to reassure their reputation and credibility. However, even the safest payment methods can be subjected to fraud. Many eCommerce websites find a solution in taking extra measures. One of the main measures is the requirement of signing up to the website. Customers, therefore, have to log in to the system and fill certain personal information to complete their purchase.
Delivery and billing addresses given in the personal accounts can be compared with the addresses provided for later purchases. Suspicious activities, therefore, can be detected when the addresses do not match with each other and can be analyzed in detail. The IP address is another way of preventing fraud. In case of an aggrievement, the IP address that is used by the defrauder can be shared with the police force. Making investigation under the light of this information, the police force will spend less time in reaching to a conclusion. The security code application is another method to prevent the risks of fraud.
CVV, CV2 and CVC are present on the back of credit cards. When the customer is on the payment stage, these codes can be demanded to prevent any risk of fraud. Another similar method is the 3D security method, which requires the approval of the bank in order for the customer to complete the online payment. In 3D security the banks sends an SMS code to customer’s mobile phone and this can prevent fraud. This method can also be activated for any amount of shopping types. eCommerce companies must use this highly functional 3D secure method especially in substantial transactions.
Other Methods to Prevent Credit Card Fraud
Along with the measures above, there are other measures you can take against the fraud. If you apply these measures to protect the credibility of your website and your customers, you can fully secure your brand name. Despite all the measures you have taken, frauds can still reach your customers’ credit card details and security codes by using key logger programs. For this reason, you can encourage your customers to use online keyboards rather than the actual ones.
You can add the online keyboard option to your payment screen to prevent the cloning of your customers’ credit cards. You can also demand verification from your customers to further make sure that they are the ones who are doing the shopping. You can demand this information via SMS or an e-mail, and detect the accounts that are trying to do shopping using fake contact information. There are many ways to ensure the security of your brand and your customers. You can prevent possible risks by implementing these methods thoroughly.