One of the key tenets of fraud is to follow the consumer. Thanks to stay-at-home mandates, temporary closures, and general safety fears, the consumer has flocked to ecommerce and online retail channels. In fact, a recent article in Forbes, How E-Commerce’s Explosive Growth Is Attracting Fraud, reported that year-over-year ecommerce and online retail revenue growth in the US has jumped to 110%.
Wherever consumers and money go, fraud will not be far behind – leaving many businesses at a greater risk for loss than ever. As your customers focus their time and effort on recovering from the impact of the pandemic, preventing cybercrime is likely further down their priority list. This is where software providers that integrate payments can save the day by helping reduce payment fraud.
Integrate Anti-Fraud Tools
Although anti-fraud tools are simple and inexpensive, they can be effective measures at detecting and preventing fraudulent activity. What makes them so attractive for integration in software platforms is their ability to be easily customized by each individual merchant. You don’t have to worry about whether a one-size-fits-all solution will work for your customers’ unique security needs.
Here’s how anti-fraud tools work:
Your customers can create rule-based parameters based on their specific business. These may include:
- Limitations on transaction volume per user or IP address
- Setting a maximum amount in a single transaction
- Blacklisting IP addresses that have been associated with previous fraud
- Blocking foreign IP addresses if they do not conduct international business
Having these rules in place enables your customers to detect suspicious transactions before they are approved and losses are incurred.
Who Needs Anti-Fraud Tools
Any business that processes credit cards has or will be victimized by fraudulent activity. In a time when every penny counts, your customers shouldn’t have to worry about losses due to fraud. Your customers that accept card-not-present payments over the Internet, in particular, should be using anti-fraud tools.
Different Partners/Different Tools
Most anti-fraud tools are specific to the payment environment. So, if your platform supports multiple payment partners or environments, you’ll want to explore which option fits best. Additionally, if you need help in evaluating the best option, your integrated payment partner(s) should be there to help you pick the right ones to help reduce payment fraud.
Providing anti-fraud tools directly in your software allows you to:
- Expand your payment offering
- Make your payment solution more appealing
- Differentiate your software platform
- Show your customers you care
Cybercriminals are working overtime to line their pockets these days. Nothing will stop them from trying to defraud your customers. But if everyone works together, they can leave empty-handed.