Running an eCommerce website can be incredibly rewarding and lucrative. With a well-designed site and a well-maintained inventory, you can reach out worldwide and supply customers with products they have been searching for online. However, there are also some frustrations. Security is a significant aspect of running an eCommerce website, and the number one security concern is fraud prevention.
Fraud can occur on your eCommerce platform in many ways, and you owe it to yourself and your customers to always be vigilant when it comes to how hackers can commit fraud and how to prevent it. After all, who wants to shop on an online store where hackers could steal their data? Here are nine ways to prevent fraud in your online store.
Monitor Your Site
The simplest and sometimes most effective form of fraud prevention is simple observation. The trick is to know what to look for in transactions. Some red flags can include conflicting information such as shipping details and billing information. Even the geographic location of transactions might be a sign something strange is going down on your website.
With proper monitoring combined with flexibility, such as the kind used in microservices for modern commerce, you should be able to stop fraud before it happens.
Security Audits
Hand-in-hand with the vigilance of monitoring is the need for regular security audits. Being aware of the patterns of fraud is essential, but preventing the fraud before it happens is even better. When it comes to security audits, be sure to ask yourself some common questions.
Is your store being backed up regularly?
Are you practicing proper encryption?
Are you taking standard security measures, such as passwords and FTP access seriously?
One technique, setting purchasing limits, is based on long-term observation. When you can see established trends in your orders, you can create limits for purchases. That way, if a transaction flies against the norm of your website’s usage, it can be flagged automatically. Establishing limits is a technique that would go hand-in-hand with long-term monitoring, which you should already be doing.
PCI Compliance
If you run an eCommerce website that processes credit card payments, your platform should be PCI compliant. Payment Card Industry (PCI) standards are meant to protect customers and merchants alike, ensuring the security of credit card transactions.
PCI compliance guarantees that your business meets the PCI Security Standards Council requirements, the organization that sets these standards. Most eCommerce platforms carry PCI compliance by default but make sure your eCommerce solution does this.
Avoid Collecting Too Much Data
Stores of data can be a beacon to hackers, so be sure you are not unknowingly attracting hackers by limiting the data you collect. Sensitive consumer data can be collected in many ways on an eCommerce site, whether in the form of cookies or data collected for transactions.
So, to combat this, have the hackers take less interest in your site by collecting less data. You shouldn’t need a social security number or date of birth with most transactions, right? If the data seems particularly sensitive, you probably do not need it.
Address Verification Service
Most credit card processors and banks offer Address Verification Service (AVS) as a measure to detect suspicious activity. This real-time process will take a billing address used in a transaction and compare it to an on-file billing address with an issuing bank.
If your eCommerce platform does not use AVS you are using the wrong platform to run your store. Always keep up on the latest eCommerce trends to ensure you make your best choice for your business.
Hypertext Transfer Protocol Secure
Surprisingly overlooked, Hypertext Transfer Protocol Secure, or HTTPS, is a simple and effective way to prevent potential fraud on your business website. HTTPS has built-in encryption of data that helps to foil potential hackers. All you need is an SSL certificate which is a marker of a safe online transaction.
Anti-fraud Tools
Most eCommerce platforms should have integrated anti-fraud tools. So, you should pick your eCommerce platform very carefully and consider what security they offer. Most of these internal solutions tend to be very basic, but additional tools exist for any budget. Working with a good eCommerce web design company should provide you with the information you need regarding your best anti-fraud tool options.
Card Verification Value
The three-digit sequence associated with credit cards is a security code called the Card Verification Value (CVV). All purchases on your eCommerce website should use this sequence. This need for this code on transactions ensures a physical credit card, a significant element of fraud prevention. Your credit card processing system must include the CVV feature.
Sell Safely
When it comes to preventing potential fraud, there are even more solutions out there. At the very least, working with a proper credit card processor will mitigate a lot of eCommerce risks. Working with a digital marketing agency specializing in eCommerce can also help you grow your brand and keep you aware of anti-fraud solutions.
