If you run an online business, you know how much fraud can cost you. How do you if you are doing everything you can for credit card fraud protection? And is it enough? 
While the Internet has seen tremendous growth over the past decade, it’s also the heaviest growth area for credit card fraud as well. It’s so much easier getting credit cards into the system when you don’t have to hand over a card to a merchant. There is a huge window of opportunity with businesses of all sizes. And with reports showing billions of dollars lost every year to fraud, it’s not something that will go away anytime soon.
As a business owner, your first line of defense is to know the most common types of fraud, and have a system in place to monitor possible attacks.
The first is verification fraud. An imposter will gain access to legitimate credit card information, and will use that information to check and verify the legitimacy. They will head to an online merchant – your shopping cart system – and place an order to check the validity of the card. Not only will you face the risk of having these transactions go through, but also have many invalid transactions take place too during the process.
Once a card is deemed verified and real, an imposter will than begin placing large orders for merchandise. The key tip-off may be a request for delivery to an address other than a billing address. Once credit card information is verified, the imposter knows they have a short amount of time to gain as much as possible. So they will order in bulk hoping for as much merchandise to sell and pawn off later.
The best way to combat fraud is to use as many tools as possible to help you stop it in its tracks. It helps to know your customers and their patterns, and question anything that seems out of place. A quick phone call can wind up saving you and your customer from potential loss. You can also work with a merchant services representative that understands your business, and can help you choose the best tools to fit your business needs.
The best way to improve your security is to discuss your needs and options. Lets talk today.