Top 3 tips to prevent ecommerce fraud

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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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ABOUT THE AUTHOR

Kristina Knight-1
Kristina Knight, Journalist , BA
Content Writer & Editor
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Kristina Knight is a freelance writer with more than 15 years of experience writing on varied topics. Kristina’s focus for the past 10 years has been the small business, online marketing, and banking sectors, however, she keeps things interesting by writing about her experiences as an adoptive mom, parenting, and education issues. Kristina’s work has appeared with BizReport.com, NBC News, Soaps.com, DisasterNewsNetwork, and many more publications.