Fraud affects businesses of all sizes in all industries. And hackers are targeting eCommerce industries.
The eCommerce industry is worth trillions. And since eCommerce security isn’t as advanced as other security types, hackers see this as an easy and profitable target.
About sixty percent of eCommerce business owners report fraud attacks, and the number is only increasing. Fraudulent sales make up the majority of these attacks.
While eCommerce platforms and credit card companies make hacking and fraud difficult for criminals, there’s still a chance they can crack your security system. Here are 10 tips to protect your company from eCommerce fraud.
1. Always Check Your Security
As an eCommerce business owner, the most important security measure you can take is checking your website’s security.
If your eCommerce platform came with its own security program, research the program and make sure it’s powerful. If not, see if your eCommerce platform allows for more security plug-ins.
You should also install new updates as much as possible. You can always hire or outsource cybersecurity professionals who can help install powerful security programs and update them for you.
2. Educate Your Employees
Another main vulnerability is your staff. Your employees can easily download malware and other harmful viruses. There are easy ways they can be fooled. This includes infected email attachments and URLs.
Regularly host meetings and educate your employees. Fill them in on new security software and updated systems.
Research ways hackers can compromise your system. Inform your employees of this research.
3. Enhance Credit Card Security
One of the main ways hackers compromise your system is by hacking into customer credit and debit cards. It’s an easy way for hackers to gain more revenue and access to money.
This is a liability issue on your part. If a customer finds out their bank card was hacked, they won’t want to shop at your company anymore.
One of the most important security roles you can take is monitoring your credit card security programs.
When your employees know different security measures, your system will be more secure. Always ask customers to require their security code and hide all of their information in your system.
As an alternative, eChecks are a safe transaction method. Offer this service, as well.
4. Require an Account Set-Up
One of the easiest ways you can protect customers is with account set-ups. This may seem odd because an account requires more of their personal information.
But their account is stored in your system. This provides more customer protection and security.
While your system is secure, you can’t assume your customers have secure software and bank cards.
When they purchase a product, require account creation. They might complain about the inconvenience, but they will be better protected.
5. Always Contact the Customer With Security Warnings
You try your hardest to prevent fraud. But what if it happens? If you tried your best, taking the blame will be difficult. But customers may try and sue.
Security measures don’t only include fraud prevention. You should also protect your company from a lawsuit.
Always send your customers security warnings. Send newsletters informing them about new fraud stories and tactics they use. Encourage them to personally protect themselves.
If you’re paranoid, make them sign an agreement. State in the agreement you won’t be held accountable for personal fraud.
What if your system is compromised? Immediately contact all customers on your contact list. Urge them to check their accounts and contact their bank.
6. Track Every Order
As a store owner, you should do what it takes to protect customer information.
To ensure all orders are processed and delivered safely, track each order from start to finish. You can easily do this by assigning a tracking number to each purchase.
When the order enters your system, make sure the payment processes correctly. Then, track the products they ordered and the shipment.
In addition, track the order after everything is done. Hackers can still steal their information.
7. Compare IP Numbers and Email Addresses
Did you know you can catch a hacker before they steal customer identity? You can do this by comparing email addresses and IP numbers.
And you don’t have to be a computer expert. Many services offer this program.
How does this help protect customers? It traces the IP address the email is attached to. An IP address is an individual address each computer has. You can see if a customer’s IP address doesn’t match the location they signed up with.
If a hacker compromised a customer’s identity, you can catch them and inform your customer.
Keep in mind, a hacker can block their IP address from viewing.
8. Check the Customer Shipping and Billing Addresses
This ties into the last tip. Make sure the billing and shipping addresses match with the addresses your customers used to sign up. This isn’t always accurate but it’s helpful to remember.
If you receive an order with different addresses attached to a customer, contact the customer immediately.
9. Require a Delivery Signature
Here is another legal tip. Always require a customer signature when products are delivered. This ensures your customers agree the items they received are the ones they ordered.
You should always monitor their purchases. But this will legally protect you.
10. Use a Fraud Protection Service
When in doubt, always use a fraud protection service. This service uses machine learning technology to analyze different purchases. Each purchase is scanned in case fraudulent activity is occurring.
The moment a purchase is flagged, you’ll be informed immediately.
Time to Use eCommerce Fraud Protection
Whether your eCommerce store is large or small, eCommerce Fraud Protection is necessary. eCommerce is a profitable hacking opportunity. Your system can be compromised, but your customers are also at risk.
If you don’t protect against fraud, you’ll face serious consequences. You’ll lose revenue, business, and even your system as a whole. You could even face legal issues.
Use these tips to protect your business and your customers. Stay a step ahead of hackers.
Do you need help processing customer credit cards? Take a look at our services.