Ecommerce businesses face significant risks when it comes to credit card fraud. Scammers constantly target online stores, aiming to steal money from both customers and merchants. As global ecommerce sales continue to rise, safeguarding your business against fraud becomes crucial. In this blog post, we’ll explore effective strategies to protect your ecommerce website.

Types of Ecommerce Fraud

• Friendly Fraud: Customers make a purchase and later file a chargeback with their bank, claiming the product wasn’t delivered or was different from what they ordered. Merchants often face an increase in friendly fraud, resulting in revenue loss. To combat this, submit compelling evidence to resolve disputes.
• Card Testing Fraud: Fraudsters test stolen credit cards by making small, low-value purchases. Once verified, they proceed to make larger transactions. Be vigilant about such activities and monitor your transactions closely.
• Duplicate Website Scams: Scammers create fake versions of your website, tricking customers into making purchases. Ensure your customers always transact on your legitimate site.

Protective Measures

• Manually Review Suspicious Orders: Regularly review orders that seem unusual or high-risk. Look for red flags like unusually large purchases or multiple orders from the same IP address.
• Achieve PCI Compliance: Comply with Payment Card Industry Data Security Standards (PCI DSS). This ensures secure handling of credit card information.
• Implement Fraud Detection Solutions: Use fraud detection tools that analyse transaction patterns and identify potential fraud. These tools can automatically flag suspicious activity.
• Require CVV Numbers: Always ask for the Card Verification Value (CVV) during credit card transactions. This adds an extra layer of security.
• Set Purchase Limits: Limit the total amount a customer can spend in a single transaction. This helps prevent large-scale fraud.
• Encrypt Your Website with SSL: Secure Sockets Layer (SSL) encryption protects customer data during transmission. Ensure your website has an SSL certificate.
• Require Strong User Passwords: Encourage customers to create strong passwords for their accounts. Weak passwords make accounts vulnerable to hacking.
• Regularly Audit Your Website: Check for vulnerabilities, update security protocols, and keep software up to date. Consider using payment providers assessed and certified for compliance with PCI DSS.

Remember, proactive prevention is key to minimising credit card fraud and protecting your ecommerce business. Stay informed about emerging threats and adapt your security measures accordingly.