As of 2024, there are more than 12 million online stores, and because it’s hard to classify them, there might be twice as many. <\/p>\n<\/blockquote>\n\n\n\n
eCommerce platforms such as Shopify allow people to easily create their online store. Although creating a store on their platform isn\u2019t free, it\u2019s very affordable. The features of such platforms allow physical stores to transition to click-and-mortar or help individual artisans sell their crafts.<\/p>\n\n\n\n
Unfortunately, eCommerce stores aren\u2019t defined only by their positives. eCommerce fraud is becoming more sophisticated, and they are growing in numbers. Fraud can negatively impact your brand’s reputation, leading to financial losses. <\/p>\n\n\n\n To protect your online business<\/a> and your customers from potential fraud, implement advanced fraud-prevention software. You can also use some manual techniques to enhance security. Keeping that in mind, we are presenting you with some vital strategies in this article to prevent eCommerce fraud<\/a>.<\/p>\n\n\n\n One of the most common types of fraud is account takeover fraud. It occurs when a person or a bot steals a customer\u2019s account credentials. They then use them for malicious intents. <\/p>\n\n\n\n Implementing strong eCommerce fraud protection strategies starts with robust identity verification systems. Account Takeover Fraud(ATO) fraud can create losses for both your customer and your business, and it can permanently damage your reputation.\u00a0<\/p>\n\n\n\n The exploitation of stolen accounts is a common thing on the internet, and it should be prevented. Consider offering account activity notifications to further reduce eCommerce fraud risks.<\/p>\n\n\n\n Almost 29% of people<\/a> didn\u2019t do anything to protect themselves on the internet, which implies that there is a considerable number of people that are at risk of having their accounts stolen.<\/p>\n\n\n\n You can\u2019t make people more aware of their internet security, but you can protect them by implementing a multi-factor authentication protocol. Requiring your users to create stronger passwords can reduce the chances of fraudulent activities, but it\u2019s not guaranteed.<\/p>\n\n\n\n MFA protocols, including the common 2-factor authentication (2FA), require users to confirm their identity through multiple devices. This process involves using multiple security codes. <\/p>\n\n\n\n With 2FA, a customer must confirm their identity via SMS code or Google Authenticator. Once verified, they can access their digital assets and make purchases. Even small businesses can implement free eCommerce fraud protection techniques through 2FA.<\/p>\n\n\n\n Internet fraudsters make significant efforts to access other people’s accounts. At the same time, many companies are working on improving fraud prevention software. <\/p>\n\n\n\n For example, SEON\u2019s list of apps<\/a> shows some of the platforms in the field of eCommerce fraud prevention.\u00a0Budget-friendly options exist for businesses just starting their eCommerce fraud prevention journey.<\/p>\n\n\n\n Since eCommerce platforms such as Shopify<\/a> allow its user to integrate third-party fraud prevention applications. You can make significant improvements for the safety of your online store by implementing one that suits you the most.<\/p>\n\n\n\n Usually, for a monthly fee, fraud prevention software will help you minimize the chances of having fraudulent orders and losing money to chargebacks.<\/strong> <\/p>\n\n\n\n These apps have their pros and cons. You need to carefully choose the one that suits you. Some apps only operate in specific regions.<\/p>\n\n\n\n Artificial intelligence advancements, which some of these apps use, helped fraud prevention software maximize its effectiveness. It is also critical to keep your fraud prevention plans and plugins up-to-date, as older versions might be flawed. <\/p>\n\n\n\n Online stores can benefit from partnering with third-party payment processors. The most convenient and secure way of handling payments is through a certified and reliable payment processor. <\/p>\n\n\n\n A payment processor will help you manage chargebacks, payments, and storage of personal and credit card information and increase the security of the payment process. <\/strong><\/p>\n\n\n\n Losing the data of your customers will cause a significant drop in your brand’s reputation and sales. <\/p>\n\n\n\n A third-party payment processor will protect your customers’ valuable data and prevent any payment fraud that can lead to revenue losses or even a trial. <\/p>\n\n\n\n Source: pixabay.com <\/p>\n\n\n\n Even though an order goes through multiple filters before reaching you, there is a chance that the order is still fraudulent. Whether the order comes from a suspicious IP, or a costly order that isn\u2019t common in the history of a user, you should evaluate its legitimacy manually. <\/p>\n\n\n\n Different product categories may require specific fraud prevention strategies and eCommerce approaches. Reviewing every order manually will make you lose precious time, but it is wise to do that for highly risky orders. <\/strong><\/p>\n\n\n\n If the order isn\u2019t costly, you can just consider whether it is worth your time to go the extra mile. However, an expensive purchase might give you significant profit, and you should consider reaching out to your customer before approving such orders.<\/p>\n\n\n\n There is a variety of ways that you can do your investigation. Legitimate customers will leave a variety of personal info to you, and you can start by contacting them. If they live in the same country as you, the most convenient way is to call them and check their order over the phone.<\/p>\n\n\n\n Other useful ways might be reaching out to them using their email address, or you can contact them through an internal chatbot<\/a> if your online store possesses such a thing. If you don\u2019t get an answer in a few days, you can be sure that the order was fraudulent.<\/p>\n\n\n\n Whether the user responds positively or negatively, it\u2019s important to check the legitimacy of their order. Warning them about the potential theft of digital or financial assets shows respect for your customers. This will indeed affect your brand reputation positively. <\/p>\n\n\n\n No matter where you are based, you should consider having discounts for certain international holidays. Black Friday<\/a>, Valentine\u2019s day, Christmas, New Year, and other important dates will surely affect your sales positively. <\/p>\n\n\n\n Since both online and physical stores will deal with an increase in orders, people with malicious intent can consider this a perfect time to make fraudulent orders. <\/p>\n\n\n\n Automatical fraud analysis, such as Shopify\u2019s built-in fraud analysis or fraud prevention software, will be your best friend during such seasons.<\/p>\n\n\n\n Depending on their number, it can be unmanageable to manually review all the received orders. <\/strong><\/p>\n\n\n\n Verification via multiple devices when logging in is a great way to minimize the chances of people having their accounts stolen. But a step further in protecting the data of your customer is by verifying each purchase. Many of the best eCommerce fraud protection software options include device fingerprinting technology<\/p>\n\n\n\n First, every purchase should require your customer’s card verification number input. <\/strong>This verification requires both the front and back sides of a credit card, increasing the security of credit card purchases. <\/p>\n\n\n\n Another important verification method is using an address verification system or AVS. This software verifies whether the address that the customer leaves is a legitimate one and if other cards have made orders to it. <\/p>\n\n\n\n Fraudsters might not straightforwardly use non-existent addresses, but they might use non-existent housings or input a wrong ZIP code. In such cases, AVS will help you to detect such attempts automatically. <\/p>\n\n\n\n To prevent fraud on your website, you can use an internal blacklist or integrate fraud prevention software to track suspicious activity based on names, IP addresses, and shipping addresses. <\/p>\n\n\n\n It’s also important to allow users to request the unblocking of their personal information or credit cards, especially if they\u2019ve been victims of hacking. This approach ensures better security while maintaining trust and allowing legitimate users to regain access to their accounts.<\/p>\n\n\n\n If a person laid their hands on an account with auto-filled credit card info, he could be discouraged from making fraudulent orders by implementing an email verification. <\/p>\n\n\n\n You might wonder why would someone purposefully limits the number of products they can sell. The reason behind this lies in the fact that just like large amounts of profit can be gained through multiple sales. <\/p>\n\n\n\n However, fraud can lead to significant losses. If many orders come from a suspicious address, limit the number of products a person can buy.<\/p>\n\n\n\n![\"Strategies](\"https:\/\/hasthemes.com\/blog\/wp-content\/uploads\/2022\/11\/Fraud2.jpg\")
Key Takeaways<\/h4>\n\n\n\n
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1. Multi-factor Authentication Protocols<\/h2>\n\n\n\n
![\"Support](\"https:\/\/hasthemes.com\/blog\/wp-content\/uploads\/2022\/07\/support-genix-support-ticket-plugin-for-wordpress-banner-1.png\")
<\/a><\/figure>\n\n\n\n2. Use Fraud Prevention Software<\/h2>\n\n\n\n
![\"Use](\"https:\/\/hasthemes.com\/blog\/wp-content\/uploads\/2022\/11\/protection.jpg\")
![\"HT](\"https:\/\/hasthemes.com\/blog\/wp-content\/uploads\/2023\/01\/ht-mega-728x90-1.png\")
<\/a><\/figure>\n\n\n\n3. Implementing Third-party Payment Processor <\/h2>\n\n\n\n
4. Review Risky Orders Manually<\/h2>\n\n\n\n
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<\/a><\/figure>\n\n\n\n5. Be More Alert During Shopping Seasons<\/h2>\n\n\n\n
6. Use Verification Software<\/h2>\n\n\n\n
![\"shopibuffet\"](\"https:\/\/hasthemes.com\/blog\/wp-content\/uploads\/2022\/12\/shopibuffet-banner-200x200-1.jpg\")
<\/a><\/figure>\n\n\n\n7. Limit Order Quantities<\/h2>\n\n\n\n
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