Protect Your Online Store Against Fraud In 4 Easy Steps

March 28, 2017
Author: Hamster, www.hostens.com

If you have an online store selling cute hamsters or other nice stuff, you must admit the risk to be a target for cyber crime. Even if you’re just starting a small business online, it is easier to make it right from the start instead of recovering from mistakes. Especially, talking about small business, the damage can be very difficult to eliminate.

Thankfully, there are few main steps you can take in order to minimize the risk. Doing it right first will impact every other decision you make later. So, let’s learn a bit!

1st STEP: UNDERSTAND YOUR RISK AND WEIGH IT

We feel a bit like your mother by telling you that “everything begins with understanding”. But talking about awareness, ecommerce and its security is not an exception. The growth of cyber-crimes has exponentially witnessed during recent years. So, it undoubtedly became a serious threat for ecommerce industry. That is the thing we must to realize and admit today.

Although it shouldn’t be the main leverage in order to avoid cybercrimes, the constant education of your customers is necessary. Let them know what kind of information you collect, inform how the sensitive data is protected, and so on. Also, don’t forget to talk how to make your password safer, what are the main differences between debit and credit cards, what are the most common weak links in Internet security today. Furthermore, teach the users of your ecommerce platform how to spot suspicious behavior and what kind of actions should be taken after.

Finally, as cyber-criminals are really skilled by using more and more advanced attack techniques every day, try to follow the latest cybercrime trends by yourself, too.

2nd STEP: LOOK FOR RELIABILITY AND S E C U R I T Y

As there are many ecommerce platforms providers out there, choose the reliable one. Whereas there are two major types of ecommerce platforms at the market, consider which platform will be chosen. If you are lucky to find the already hosted platform which has perfectly met your expectations, you will be less concerned about maintenance and security issues of your online store. But if you want to have more freedom and enjoy the power of customization by preparing your store according to specific needs, you have to choose a self-hosted platform. At this case, we advise you to choose your hosting provider carefully, too.

At first glance, it seems that all the providers works with security in mind and actually it is quite hard to identify which company have highly secure servers. But don’t forget to take a look how regularly backups are made, how often the network is monitored. Also, find out the main security features of provider’s data center. In the end, won’t skip the reviews of every hosting provider as well as dig deeper (or even test it out!) how carefully they screen accounts, obtain proof identity, and so no. Moreover, don’t be afraid to contact them personally by asking to tell more about their security before you sign the contract and move your data to the server.

3rd STEP: USE THE REAL-TIME FRAUD ANALYSIS TOOL

Luckily, there are many nice and advanced tools nowadays. In order to protect your ecommerce from fraud as well as reduce charge-backs, we suggest you set up system alert which lets you monitor any suspicious during the online transaction. These real-time fraud analysis solutions are designed to recognize the suspicious and unusual circumstances. For example, when the orders are placed with different credit cards numbers, addresses or phone numbers.

These tools provide you with deep and real-time (in-session”) analysis, post-query alerts, and the broad range of data points used for risk assessment, your own risk modeling, and other various insights. As it provides the detailed information about each transaction, fraud analysis tools enable to detect today’s most sophisticated attacks.

4rd STEP: GO AN EXTRA MILE WITH THE VERIFICATION SYSTEMS

Various verification systems such as AVS (address verification system) and CVV (card verification system) are like a must have fraud management tools today. These filters dramatically reduce fraudulent charges by asking customers to enter the secret/private information. Despite the fact, this feature can really strengthen your site’s anti-fraud capabilities, it doesn’t deter all the fraudulent transactions. Consequently, you should think about going an extra mile to keep your online credit and debit card transactions private and secure. One of possible options is an added layer of protection provided by global financial services companies “Visa” or “MasterCard”.

Visa offers 3-D secure, an XML-based protocol, under the name Verified-by-Visa. Services based on the protocol have been adopted by MasterCard as MasterCard SecureCode, too. Visa and MasterCard implementations have some differences, but basically, it operates in the same way. The protocol ties the financial authorization process with an online authentication by adding one more additional layer of online shopping security. To put it simply, it provides online merchants with the added security by protecting themselves against “cardholder unauthorized” or ”cardholder not recognized” charge-backs as well as an extra work. While ecommerce platform users get the protection with additional security checks typically used as a private password. This authentication method ensures that your (e-shopper‘s) card details haven’t been compromised and it is really you making the purchase.

If you have fifth step to add, don’t hesitate to contact us or comment on our social networking sites.

Have any questions? Do not hesitate to contact us!