The Definitive Guide To eCommerce Fraud & Fraud Protection Strategies

There are presently roughly 206,000 assaults every month on online businesses’ shops. As online shopping becomes more popular, so does the potential for eCommerce fraud by hackers and unethical customers. Ecommerce fraud is on the rise, and this thorough guide will teach you all you need to know about protecting your online business from it. It explains what it is, how it works, and what you should be doing to combat it right now.

Are you concerned about the security of your online business? The following information is important for you to understand.

⦁ detecting online scam

⦁ tools for preventing eCommerce fraud 

⦁ strategies for preventing eCommerce fraud 

What is Ecommerce Fraud?

There are business transactions made over the Internet, often via an online shop, when we speak about eCommerce. Desktop computers, laptops, tablets, and cell phones are often used for these kinds of transactions. The term eCommerce fraud refers to illegal deceit done over the internet to obtain money or anything of value.

The deceit is carried out during an online commercial transaction for financial or personal benefit while adversely impacting a business’ bottom line. 

There are two points to keep in mind concerning eCommerce fraud: the deceit is meant to go undetected, and the target is an online retailer.

Ecommerce fraud detection

All the tools and practices an online business may use to decrease fraud costs and resources are covered under Ecommerce fraud detection and prevention. In addition to decreasing chargebacks and friendly fraud, this also involves banning transactions using stolen credit card details. You’ll get two pieces of information from your credit card processor to assist in fighting fraud: a three- or four-digit “security code” and an AVS response. A merchant’s database should never include the CSC code.

Ecommerce fraud protection

Detect security holes before fraudsters and criminals do. You should conduct audits for safety. You must be PCI compliant if you have an online shop that takes credit cards. By keeping an eye out for unusual behavior, you can keep your online business safe from fraudulent purchases. Credit card processors and issuing banks also often provide an Address Verification Service (AVS) to help identify suspect credit card transactions in real-time and prevent credit card fraud. 

E-commerce fraud protection with Parselytics

Whether you are new to the eCommerce environment or have been around for years, you’ll want to maintain protection and an evolving strategy for risk management. Better API integration and Risk Management are two major ways to keep away fraud from your website. If you are struggling to keep risks in check, Parselytics can help.

Parselytics provides comprehensive API integration and Risk Management services to help you retain revenue with minimal effort and maximum security while you also grow your business. 

You can retain money with little work and optimum security with ParselyticsAPI integration and Risk Management services.

Chargeback Fraud Prevention Tools – Which is Right for Your Online Business?

We have compiled the following list of Chargeback Fraud Prevention tools that may assist you in stopping fraud and chargebacks. Before You Buy … The following list of fraud tools may assist you in preventing fraud and any chargeback fees

These fraud tools can help block transactions that could lead to chargebacks and detect potential fraudulent activity. However, none of these tools can completely eliminate risk.

It makes sense that fraud tools can reduce crime but will not eliminate friendly fraud – such as illegitimate chargebacks. Because it is impossible to eliminate dishonest consumer behavior and misunderstood requests for refunds, you will still receive some chargeback requests. This is true regardless of how robust your tool is.

That being said, you can still get maximum protection using a the following tools that are provided by our chargeback management software 

  • Prevention alerts and Visa Merchant Purchase Inquiry (VMPI): This is used to resolve disputes after a transaction has taken place but before a chargeback has been issued.
  • To avoid liability for Visa’s allocation disputes, your processor or gateway can offer tools like AVS and CVV. 
  • Customers who have previously protested a transaction are added to a blacklist.
  • A risk management software breaks down the chargeback data by variables you can identify the source of the chargebacks so you can resolve them
  • Recovering lost revenue through chargeback technology Learn More

A comprehensive risk management strategy may seem like it requires a variety of different service providers. The truth is, multi-layer protection is not as hard to obtain as you might think.

Parselytics an all-in-one solution. You can use a single platform to prevent and combat chargebacks.

Last but not least, some service providers reimburse merchants if a chargeback is received on a confirmed transaction. However, merchants will not receive a refund for all chargebacks, since this reimbursement policy is restricted by certain rules. Because of this, if you want to recover the revenue you lost to chargebacks not covered by the guarantee, then you still need chargeback management software and a reliable system in place. Click here for more information