How to prevent fraud on your e-commerce website
Why consumers are afraid of shopping online?
The reason is Fraud. Today, making money online is very easy and there are lots of opportunities available on internet. But, the major problem E-commerce site owner’s face nowadays on internet is fraud. Consumers will always hesitate to shop online from your e-commerce site, unless you provide them some evidence that your e-commerce website is 100 percent secure and the sensitive information they provide is completely protected. Luckily, there are number of protective actions that can be taken to prevent your E-commerce website against fraud.
Fraud Detection Service
A service called Fraud Detection actually helps you to verify that the individual entering credit card information is real the owner of that card. While useful, this type service does not entirely eliminate the risk of fraud. Let’s see how it works.
The fraud detection service asks the consumer to verify an address and compares it to what is one file with the credit card issuer. It the address matches, the customer is allowed to proceed with the purchasing. And, if it doesn’t they will be denied rights to make a purchase. For the simple fact that numerous residential addresses can be found online, a determined fraudster may be able to bypass this mechanism. This service is still a great option as it will diminish the fraud risks.
Credit Card Verification Codes (Aka CCV)
The credit card verification code is the three important numbers found on the back of a credit card. You need to insert those numbers when a customer shops on your site. In order for someone to place website fraud, they most acquire the credit card numbers and the credit card as well. By implementing this type of scheme on your site, you can decrease the risks of fraud significantly, mainly because credit card numbers are typically stolen rather than the actual card. Certainly, a credit card can be stolen and used to purchase items online, though it’s less likely to occur because people usually notice that their card is missing and cancel it before any damage is done.
While a fraud detection service can be very effective, this mechanism should always be paired with a flawless website design that limits the possibility of fraudulent activities. Your E-commerce site should be designed with the latest versions of scripting languages and programs to fight off hackers and protect the integrity of your business. You may have to shell out extra money to make sure fraud is not occurring, but it is well worth it in the long run. Having a secure site will save you money and protect your customers, which is perhaps the most important aspect of online business.
Before creating your own E-commerce website, make sure you have a pretty good knowledge about the dangers of internet frauds. Having this knowledge will help you to find better ways to prevent your website and your consumers from the internet frauds. Fraud occurs everyday online but neither you, nor your customers have to be a victim.