How to Protect Your eCommerce from Fraud

In the world of mobile eCommerce small businesses do not use proper fraud prevention measures. It is found that the problems caused due to mobile fraud cost such businesses more than three times than the stolen product. Small businesses consider robust fraud protection methods as a loss. However, it is always best to understand about all the available options. In the current situation, eCommerce fraudsters are confident, technologically advanced, and well mask their personal identity, and thus, the importance of fraud management resources have increased to keep in pace with such environment. It is important to develop advanced risk management infrastructure.

Here you can find some of the key practices that eCommerce marketers of all sizes utilize to better identify fraudsters and prevent other related problems. 

Proxy Detection and Evaluation

It is important for every business to do regular proxy detection, as it is very important and is one of the first steps to evaluate fraud. If you are not doing it, start doing it from today itself. The businesses that regularly undergo a real time analysis of proxy detection they are sure to have the best results as it is usually the most accurate way to detect a proxy. So, start planning to use such service. You need to simply do a web search for the IP address along with the keyword related to “proxy,” and it will allow you to find out whether there is any current proxy on your public warning lists.

Based On Your Geo Location

The best way to that will help you to identify frauds is by using geo location. By checking the endpoint of any IP address of your customer, you can find out the location from where the customer has placed the order, and then if you feel confident that there is no chance of this customer to be a proxy, you can continue with the remaining processes. There are several free online services that will help you to identify the IP location. The IP information that you have gathered can be used for with other data points like billing addresses, shipping and with the results of the AVS.

Address Verification Service (AVS)

By using the data received from AVS along with an IP address or any other data points can help you to evaluate the validity of any received order. For example, any IP address which will be geographically close to the AVS address can be considered as a sign of the validity of that order. But, during certain situations AVS match can be misleading. It is not always possible that the shipping address match the AVS data. There might be orders that do not match with their shipping address. This may be due to several reasons like for example, customers ordering for any product delivery to any temporary residence.

Data Linking

Always keep a record of all relevant order data that include information related to the billing address, emails, phone number and shipping address. Currently, the best way to check and combat online frauds is by utilizing Big Data. Linking to such data can provide valuable insights about any customer’s order pattern and will also help you to notice the negative indicators that include changing credit cards, machine ID, order velocity, and IP addresses and connections that may be used with other customer IDs.

Hire Experts                         

There are several ways to effectively combat online eCommerce frauds that even smaller businesses can utilize and protect themselves. By hiring a third party expert, one can save a lot of time, money and also relieve themselves from the related headaches. If you are using Magento for your eCommerce web-store, you can find several tools in the app store that will help you to protect your web-store independent of your business size or your budget. Also, this will help you to reduce the costs related to building new risk management team. There are some services that provide specific order information and review tool administrators. There are also services that offer turnkey risk management platforms that will take care of your complete order review process.

The order review and risk management requirements of your company should be handled with utmost care and should not be taken lightly. If you don’t have a dedicated team or have limited resources, start implementing these tips and protect your store against fraudsters.

[We are Connecting Dots, a full service eCommerce solutions company. At Connecting Dots, we help companies build great online businesses, we are Magento implementation partners and build great eCommerce portals]