Fraud is a major focus for today’s retailers. Not only will it affect your company’s bottom line, but if not handled correctly, can impact your customer’s trust in your brand.
- Gather as much data as possible on every transaction, no matter how trivial it may seem. “The larger the data pool, the more likely you are to detect fraud,” the report states. Using a broad dataset, the report says, will help retailers apply a statistical approach to the data and create an analytical model that can help fight against fraud.
- According to the report, 75% of ecommerce retailers conduct manual reviews to validate a majority of the orders placed online. When conducting a manual review, many retailers are moving beyond asking for the security code on a credit card to verify identify. According to the report, some retailers are looking at the customer’s previous transaction histories, contacting the customer directly to verify identity, and using Google Maps or IP geolocations to verify delivery addresses.
- To minimize chargebacks, have retailers should have a clear and articulate terms and conditions that is acknowledged by the shopper before processing an order. This should be followed by a confirmation email or online order validation that requires some sort of customer action.
- According to the report, sending an email to the address provided with a link to activate an account or order will block a “fraudster” from verifying a fraudulent purchase and will also give you a history trail of the shopper if the consumer wants to dispute a transaction later.
By creating a balance between your internal fraud safeguards and managing the customer experience, you should be able to “maximize legitimate revenue” while fighting fraud on your site, according to the report.