7 Best Practices to Prevent eCommerce Fraud

Today, customers prefer shopping online as eCommerce has revolutionized the way we shop. However, with the rise of online transactions, the threat of eCommerce fraud lingers around. As an eCommerce business owner, it’s essential to be proactive and implement effective measures to prevent fraud that may lead to a bad customer experience or losses.

And how to do that? Here are the best practices to prevent eCommerce frauds that will help you out!

1. Secure Payment Gateways

Let’s start with the first and the most relevant practice to prevent eCommerce fraud. Ensure that your eCommerce platform utilizes secure payment gateways with industry-standard encryption and fraud detection mechanisms. This helps safeguard sensitive customer information and prevents unauthorized access.

2. Two-Factor Authentication

Implementing Two-Factor Authentication adds an extra layer of security by requiring customers to provide additional verification, such as a one-time password (OTP) sent to their registered mobile number or email address. This prevents fraudulent access to user accounts.

3. Use Address Verification System 

Address Verification System verifies the billing address provided by the customer against the address associated with the credit card. This helps identify suspicious transactions where the addresses do not match, reducing the risk of fraud.

4. Employ Fraud Detection Tools

Leverage advanced fraud detection tools and software that employ machine learning algorithms to detect patterns and anomalies in customer behavior, transaction history, and other data points. These tools can help flag potentially fraudulent activities in real-time.

5. Monitor & Analyze Transactions

 Regularly review and analyze transactions to identify any unusual or suspicious activities. Look for signs such as multiple orders with different shipping addresses, unusually large orders, or frequent use of stolen credit cards.

6. Strong Password Policies

Encourage customers to create and change strong passwords periodically. Implement password complexity requirements and provide guidelines for secure password creation. This helps mitigate the risk of compromised accounts.

7. Robust Data Security Measures

 The last one on our list of the best practices to prevent eCommerce fraud is quite important. Implement stringent data security measures, including encryption of customer data, regular data backups, and secure storage protocols. Protecting customer information ensures that it remains confidential and out of the hands of fraudsters.

The Smartest Practice- How can Shipway- the all-in-one Shipping Solutions help you Prevent eCommerce Frauds?

Paying attention to all of the above practices will take a lot of time. Hence, we have the smartest practice- get a Shipping solution. Shipway is one of the best ones and is equipped with advanced features that can automatically detect potentially fraudulent orders. These features include:

Fraud Detection & Order Verification

Shipway solution can analyze various order parameters, such as shipping addresses, payment information, and transaction history, to identify patterns and detect fraud orders. This helps flag suspicious orders for further review and verification. Furthermore, with Shipway you can also verify risky orders.

Address Validation

With Shipway, you can verify the accuracy and legitimacy of shipping addresses provided by customers. By cross-referencing addresses with reliable databases, you can identify invalid or suspicious addresses that may be associated with fraudulent orders.

Shipway Protect

Did you hear about the COD order phishing fraud cases? Shipway has come up with the best solution for it. It’s called the Shipway Protect. Merchants can easily protect customer data by using these features as it lets them-

• Enable Limited-only access to Sub-user accounts
• Activate 2-factor verification for accessing the Dashboard
• Hide End Customer Contact Information on Dashboard
• Use OTP Verification for Viewing the Order Lookup/Tracking Page

Final Takeaway

We have listed the smartest solution for preventing eCommerce fraud. Now, with a shipping solution such as Shipway, you can do it all and not only save your customer data but prevent any potential fraud. Want to know more?

Frequently Asked Question 

You may also like…