There are many opportunities for making money online. However, fraud is one of the biggest problems facing the internet today and should be a major concern for anyone running an E-commerce site. The fear of fraud is the main reason why consumers do not want to shop online. If you cannot prove that your site is 100% secure and sensitive information is protected, potential customers will be very hesitant to shop with you. Fortunately, there are number of preventive measures that can be taken to protect your E-commerce site against fraud.
A fraud detection service will help you ensure that the individual entering credit card information is actually the owner of the card. While useful, this type service does not entirely eliminate the risk of fraud. Here is how it works.
The fraud detection services asks the consumer to verify an address and compares it to what is one file with the credit card issuer. If there is a match, the customer is allowed to proceed. If not, they will be denied rights to make a purchase. For the simple fact that numerous residential addresses can be found online, a determined fraudster may be able to bypass this mechanism. This is still a good option as it will reduce the risks.
The credit card verification code or CCV, is the three numbers found on the back of a credit card. You need to make sure these numbers are required when someone shops on your site, calling for the owner to look at their card and then enter the information. In order for someone to commit website fraud, they most possess the credit card numbers and the credit card as well. By implementing this type of scheme on your site, you can reduce the risks of fraud significantly, mainly because credit card numbers are typically stolen rather than the actual card. Indeed, a credit card can be stolen and used to purchase items online, though it’s less likely to occur because people usually notice that their card is missing and cancel it before any damage is done.
While a fraud detection service can be very effective, this mechanism should always be paired with a flawless website design that limits the possibility of fraudulent activities. Your E-commerce site should be designed with the latest versions of scripting languages and programs to fight off hackers and protect the integrity of your business. You may have to shell out extra money to make sure fraud is not occurring, but it is well worth it in the long run. Having a secure site will save you money and protect your customers, which is perhaps the most important aspect of online business.
If you are considering E-commerce, the best thing you can do is learn about the dangers of internet fraud before even creating your site. Equipped with this knowledge, you will be able to find ways to protect yourself, the website and your customers from the sea of busy internet criminals. Fraud occurs everyday online but neither you, nor your customers have to be a victim.