Fraud Prevention in Ecommerce
Best practices for preventing credit card fraud and protecting cardholder data on your site
Most Common Types of ECommerce Fraud
Refund Fraud / Chargeback Fraud
A type of fraud which involves purchasing from an online merchant then asking for a refund. While customers gets the refund, the online merchant will not only lose the sale, but also have to pay for the chargeback fee to the credit card processing company.
How to prevent:
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Detailed Return Policy
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Detailed Product / Service Descriptions
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Detailed Purchase Records
Card-Testing Fraud
Fraudsters using stolen credit card numbers to make multiple small transaction attempts on vairous ecommerce stite. As the transaction amount is usually very small and will easily be igonred until fraudsters suceeded in a large transactions.
How to prevent:
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Input of CVV and expiration date
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Input of a billing address
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Smart IP address monitoring
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Do not disclose detailed decline reason.
Extra Fraud Protection
3D Secure 2
3D Secure 2 provides businesses and their payment provider with more data elements on each transaction to be able send them directly into the bank's database. This includes everything from shipping addresses, right down card details like expiry date - all in an effort help combat fraud!
With this new technology, banks will be able to assess the risk level and select an appropriate response for each individual transaction.
There are more advanced but common frauds, want to know details? Please feel free to Contact Us for a deep dive!