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BizReport : Ecommerce : September 24, 2021


Top 3 tips to prevent ecommerce fraud

Each year fraudsters become more and more adept at hiding their crimes from merchants and brands until it is too late. However, despite the rush of shoppers to online stores during the pandemic, one expert says there are three things merchants and marketers can do to prevent e-commerce fraud.

by Kristina Knight

First, know your users through stronger identity assurance

"Businesses who add identity validation and verification steps for logins and checkouts are more likely to protect themselves, and customers, from fraud vulnerabilities," said Jim Ducharme, Outseer. "Popular and effective types of verification include OTP (one-time passcode) over SMS Text, QR code, biometric, and FIDO based mobile authenticators that are all more secure than passwords alone and less prone to account takeover or brute force attacks."

Second, transaction assurance through new secure protocols

Another way for businesses to add a layer of protection for their customers is by using a trusted and verified Card-Not-Present (CNP) technology. A key way for businesses to do this is to leverage the latest Europay, Mastercard and Visa (EMV) 3-D Secure standard for online transactions. By authenticating customers behind the scenes, false positives will be reduced and transaction approvals for legitimate purchases will increase--without slowing down or compromising the customer," said Ducharme.

Third, leverage risk-based approaches to help identify fraudulent activity and reduce friction for your genuine customers

"Device assurance and verification, Geolocation and behavioral data are just a few examples of the techniques used by risk-based authentication solutions to help provide a level of identity and transaction assurance to reduce the risk of fraud in online interactions," said Ducharme. "These solutions can not only reduce the risk of fraud by detecting anomalies and inconsistencies in various signals of user activity and identification but can also reduce the friction for legitimate customers at the same time by providing a much more silent assurance that the person is who they claim to be."






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