Ecommerce fraud protection is essential for any online store to avoid revenue losses, reputation damage, and diminished trust from fraudsters. This is why it’s critical to stay up-to-date on newest threats and develop effective strategies to stop fraud before it starts.
E-commerce Fraud Types
The most common types of ecommerce fraud include stolen credit cards, stolen customer data, and account takeover attacks. Each can result in significant financial losses and damage your brand.
Taking the necessary steps to prevent ecommerce fraud can be difficult and time-consuming. You’ll need a comprehensive strategy and a team of experts to keep your business safe.
Ecommerce Fraud Prevention: Keeping Your Business and Customers Safe
In addition, identifying the most common fraud threats can be complicated. It’s important to have a robust system in place that detects suspicious patterns while avoiding runaway false positives.
Address Verification Service (AVS): This fraud prevention method checks the billing address submitted by the card user against the addresses registered with the issuing bank in real-time. When the addresses do not match, AVS flags the transaction for further investigation.
Spikes in sign-ins and lockouts: These can be indications that a user is trying to sign into your site using a fake identity. In these cases, it’s a good idea to check their order history and change their password before approving any new purchases.
Many back-to-back purchases: This can indicate bot activity. It’s also unusual to see a customer make multiple purchases from the same account or card.
Multiple orders from different cards: This is another indication of a bot. Scammers use different credit cards to try to avoid detection.