Strategies eCommerce Stores Can Use to Reduce Fraud

by / ⠀Startup Advice / January 15, 2021

More people are taking their businesses online during the pandemic. While this is a great way to cross borders, it has offered a loophole for fraudsters to scam people. Many businesses have incurred losses by selling to fake accounts. This has made businesses skeptical of overseas buyers who are known to bring in the most money. 

To help deal with this, there are several measures you can take to ensure that you are not a victim of fraud.

Use Ecommerce Protection Services

Businesses become a victim of fraud when they lack protection services. Every business needs to invest in quality protection services. These services will help the business know if they are dealing with honest people or fraudsters. There are checks that the systems will carry out on behalf of the business owner, saving them time.

Use Reverse Email Lookup

Using reverse email lookup will help the seller determine whether the buyer they are dealing with is genuine or not. In doing a reverse email lookup as the buyer is going through the checkout process, the seller can determine how likely it is that the customer’s email is legitimate or not. This is done by looking at things like how long ago the email was created, if the email has been used to create social media accounts, or if the email in question has been flagged for fraudulent activities. 

All these factors come in handy when it comes to determining whether a buyer is genuine or not.

Use Verification Technology

Another thing a seller can do is use verification technology when dealing with buyers. The technology will take a look at both the physical and digital components of identity. 

In taking a look at these, one can determine the fraud risk of the buyer. According to experts, a buyer must use an address verification system (AVS) to fight against eCommerce fraud. Card verification value (CVV) is also recommended because it adds an extra layer of security.

Know the Origin of a Transaction

Knowing the device used to place an order can help the seller reduce fraud. All devices have different fraud profiles. Knowing which device has been used will go a long way in figuring out if the seller is genuine or a bot. Other than detecting bots, carrying out device assessments can help one know of any malicious activity.

Update All Software

One thing that makes it easy to defraud a seller is when they have outdated software. Sellers must update their software regularly. It will help them fix bugs and access new features. These features will aid in spotting and dealing with possible fraud threats from buyers.

Have Good Customer Service

As much as customers may try to scam their way around a product, not everyone is a fraudster. Having excellent customer service is essential. Providing quality goods will ensure that none of your customers will want to return their purchases. 

In case of a complaint, have clear guidelines on how refunds work on your site. Doing this ensures that you do not have issues with buyers who swindle your money. Have clear and open communication channels with your clients as this is what will make them trust you and not ask for refunds. It might seem like a non-issue, but it will save you money in the long run.

Running a business can be difficult. There is the fear of losing all of your hard-earned money. Despite the many challenges, you can still thrive as a seller. Putting all these measures in place will ensure you do not fall victim to fraud.

About The Author

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Matt Shealy is the President of ChamberofCommerce.com. Chamber specializes in helping small businesses grow their business on the web while facilitating the connectivity between local businesses and more than 7,000 Chambers of Commerce worldwide.

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