Online shopping has made life so much easier. Now you can buy everything you want and need without ever having to leave your home. As a seller, you’re able to offer your product to a much wider range of customers—not just in your city, but everywhere around the country and even across the globe. But the fact that you never see your customers’ faces and check their credit card personally means the risk of credit card fraud is much higher. If you want to ensure your company is not responsible credit card fraud online, here are a few things you can do:
Be wary of different billing and shipping addresses – It’s not uncommon for fraudulent credit card users to use someone else’s card to ship products to their address. There are honest customers who order items ship to a different address than their billing address, but it’s best to be wary if you see two addresses on the order.
Watch for iffy email accounts –The vast majority of email users today will have an email address from a major provider like AOL, Google, Yahoo, or Hotmail, as well as emails for their company or website. Be wary of emails that belong to unusual service providers, as well as email addresses with a random selection of numbers and letters that make no sense. It’s not always fraudulent, but it’s definitely a warning sign!
Use a fraud profiling service – If you’re not 100% certain about a customer, consider using a fraud profiling service to help you dig a bit deeper. These services will analyze the customer’s IP address, name, purchase history, and other details in order to determine whether or not they are fraudulent. It’s better to be safe than sorry when it comes to high-risk transactions that involve a large sum of money or a lot of products.
Protect your website – One of the worst things that can happen to your online store is having the credit card information database hacked and the information stolen. It happens a lot more often than you’d think, especially to larger retailers. It’s vital that you update your website security measures to protect against cyberattacks.
Require the Security Code – A lot of credit card thieves use credit card names and numbers, but they don’t own the credit card. One good way to prevent fraud is to require the security code (also known as the CVV2, CVC2, or CID), the 3 or 4-digit number written on the back of the card. Do not allow purchases without the security code. A lot of fraudulent credit card users will be unable to buy from you because they don’t have the card.
Credit card fraud can come from the most unlikely places, and sadly the accessibility of online shopping makes it easier for criminals to buy a broad selection of products with stolen cards. It’s up to you, the retailer, to be smart and do your part to deter credit card theft!