While the internet gives sellers access to a massive global audience, it also, unfortunately, attracts malicious buyers looking to take advantage of unwitting companies. To ensure that you do not fall victim to eCommerce fraud, it is important to recognize common tactics used by fraudsters and how to safeguard your online business.
The following is a look at some of the best practices for businesses looking to prevent fraudulent transactions from disrupting and negatively impacting their eCommerce operations.
Sell on Secure eCommerce Platforms
Operating an eCommerce business brings an array of potential threats. One of the best ways to avoid being an online fraud victim is by having a secure eCommerce platform. Because of this, many eCommerce businesses choose to sell entirely through third-party platforms that offer the extra layer of security they need.
As you look for sites to sell through, such as Amazon, Shopify, Highwire, osCommerce, FoxyCart and more, be sure to consider the level of security each platform provides. Many top eCommerce platforms offer an enhanced customer experience as well as improved fraud protection. In addition to a third-party eCommerce solution, businesses can operate independent sites and take advantage of plugins that enhance their security.
Track All Deliveries
Chargebacks are among the biggest headaches for eCommerce providers. Though a high sales volume makes it virtually impossible to eliminate chargebacks, some solutions mitigate their impact on your business.
Sending your products with tracking ensures there is a record of delivery in case a recipient claims otherwise. Some payment vendors require this physical record in order to process a reimbursement. Authorities may also want the information if you report buyer fraud.
Having all deliveries tracked will help reduce online fraud and improve your ability to grow your business in a secure way.
Record and Report Fraud
In spite of the sector’s competitive nature, eCommerce professionals are a community of merchants trying to earn an honest income. If each company makes it a practice to report all fraud to the community, it will be harder for scammers to harm businesses. Doing so has the potential to deter would-be thieves from viewing online sellers as fair game and may even remove some of the violators through the criminal process.
Contacting the local police is common for small-scale fraud, but your country may have other agencies that handle large-scale digital fraud situations.
Recording zip codes and other characteristics of fraudulent activity allows you to identify common patterns. You might find, for instance, that your fraudulent buying originates in a common country or locale, making it easier for you to identify potential fraud before falling victim to it.
Choose a Secure Payment Processing Service
Having a secure payment processing service that offers chargeback coverage is one of the best ways to protect yourself from fraud. The Payoneer payment processing service offers fast payments, the elimination of chargebacks and other fraudulent buyer activity, making it a top choice for eCommerce businesses.
With Payoneer, eCommerce sellers can easily set up authorized direct payments from customers in which payment are only processed when a balance exists in the customer’s account, reducing the risk of fraud and improving overall operations.
Protecting Your Business from Fraud is an Ongoing Battle
Unfortunately, fraudsters are continually developing sophisticated ways to harm eCommerce businesses, which is why you must continually work to secure your enterprise.
Applying the strategies outlined above puts online sellers in the best position to optimize profits by minimizing or eliminating fraudulent transactions.