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{"/api/v1/resourcecenter/posts/how-to-protect-your-online-business-from-fraud":{"body":{"id":"974","slug":"how-to-protect-your-online-business-from-fraud","title":"How to protect your online business from fraud","postInfo":{"readTime":"11 min read","levelIcon":"full"},"content":[{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>You’ve likely heard the phrase “the customer is always right.” It’s a mantra for traditional business owners to show that they go above and beyond the call of duty for their clientele. To be fair, it’s a respectable way to go about building your customer base and there’s a reason that philosophy was the norm for the brick-and-mortar world of the last century.\u003c/p>\n","innerContent":["\n\u003cp>You’ve likely heard the phrase “the customer is always right.” It’s a mantra for traditional business owners to show that they go above and beyond the call of duty for their clientele. To be fair, it’s a respectable way to go about building your customer base and there’s a reason that philosophy was the norm for the brick-and-mortar world of the last century.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>However, new ways of doing business require another set of skills to help you prevent opening the door open for fraudsters, scam-artists and criminals.\u003c/p>\n","innerContent":["\n\u003cp>However, new ways of doing business require another set of skills to help you prevent opening the door open for fraudsters, scam-artists and criminals.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Online businesses are becoming savvy about the tactics that cyber-criminals are employing. In this evolutionary arms-race, the criminals continually shift and pivot to even more sophisticated ways of phishing, hacking and outright theft.\u003c/p>\n","innerContent":["\n\u003cp>Online businesses are becoming savvy about the tactics that cyber-criminals are employing. In this evolutionary arms-race, the criminals continually shift and pivot to even more sophisticated ways of phishing, hacking and outright theft.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Operating a digital storefront or other online venture without an understanding of modern fraud can be like walking through a minefield without protection. You must have strong tools and tactics in place for combating the risks. It’s crucial to prevent fraud and theft, especially when your business could be held financially responsible for any losses incurred.\u003c/p>\n","innerContent":["\n\u003cp>Operating a digital storefront or other online venture without an understanding of modern fraud can be like walking through a minefield without protection. You must have strong tools and tactics in place for combating the risks. It’s crucial to prevent fraud and theft, especially when your business could be held financially responsible for any losses incurred.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Once you understand the types of fraud and what to do in case you’re business has been targeted, you are able to react in a swift and professional manner to stop any thieves from getting further with their plan!\u003c/p>\n","innerContent":["\n\u003cp>Once you understand the types of fraud and what to do in case you’re business has been targeted, you are able to react in a swift and professional manner to stop any thieves from getting further with their plan!\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/separator","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003chr class=\"wp-block-separator\"/>\n","innerContent":["\n\u003chr class=\"wp-block-separator\"/>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"stickyMenuId":"44ee9789-1ffc-4b48-a5ea-6645e2f869cb"},"innerBlocks":[],"innerHTML":"\n\u003ch2 id=\"types-of-fraud\">Types of Fraud\u003c/h2>\n","innerContent":["\n\u003ch2 id=\"types-of-fraud\">Types of Fraud\u003c/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>There are numerous types of fraud that criminals can and will employ to disrupt your online business. The umbrella term for them is Online Fraud. This is when an individual or group targets an eCommerce or similar business with the goal of stealing money, customer data, or swindling in general.\u003c/p>\n","innerContent":["\n\u003cp>There are numerous types of fraud that criminals can and will employ to disrupt your online business. The umbrella term for them is Online Fraud. This is when an individual or group targets an eCommerce or similar business with the goal of stealing money, customer data, or swindling in general.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/image","attrs":{"id":979,"sizeSlug":"large","title":"how-to-protect-your-business-fraud-img1","sizes":[{"name":"medium","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1-600x337.png","width":300,"height":169},{"name":"large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1-1200x675.png","width":1024,"height":576},{"name":"thumbnail","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1-320x180.png","width":150,"height":84},{"name":"medium_large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1-980x551.png","width":768,"height":432},{"name":"placeholder","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1-20x11.png","width":20,"height":11},{"name":"full","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1.png","width":1921,"height":1080}]},"innerBlocks":[],"innerHTML":"\n\u003cfigure class=\"wp-block-image size-large\">\u003cimg src=\"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1-1200x675.png\" alt=\"\" class=\"wp-image-979\"/>\u003c/figure>\n","innerContent":["\n\u003cfigure class=\"wp-block-image size-large\">\u003cimg src=\"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img1-1200x675.png\" alt=\"\" class=\"wp-image-979\"/>\u003c/figure>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"f6b94d61-1751-4991-ae1c-347d5853baa1"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"account-takeover\">Account Takeover\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"account-takeover\">Account Takeover\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Customer accounts are commonly used at online stores like Amazon and Ebay to make it easy for users to come back and make purchases regularly.\u003c/p>\n","innerContent":["\n\u003cp>Customer accounts are commonly used at online stores like Amazon and Ebay to make it easy for users to come back and make purchases regularly.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>A fraudster will begin by phishing for account information directly from your customer. This can take place in the form of a fake email that convinces the customer to hand over their login information. From there, they will change the password and proceed to make purchases and steal credit card information. According to a \u003ca href=\"https://www.javelinstrategy.com/press-release/identity-fraud-hits-record-high-154-million-us-victims-2016-16-percent-according-new\">study released by Javelin Strategy\u003c/a>, account takeover is on the rise.\u003c/p>\n","innerContent":["\n\u003cp>A fraudster will begin by phishing for account information directly from your customer. This can take place in the form of a fake email that convinces the customer to hand over their login information. From there, they will change the password and proceed to make purchases and steal credit card information. According to a \u003ca href=\"https://www.javelinstrategy.com/press-release/identity-fraud-hits-record-high-154-million-us-victims-2016-16-percent-according-new\">study released by Javelin Strategy\u003c/a>, account takeover is on the rise.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"nc-hc/quote-block","attrs":{"quoteCite":""},"innerBlocks":[{"blockName":"core/paragraph","attrs":{"placeholder":"Content…"},"innerBlocks":[],"innerHTML":"\n\u003cp>\u003cem>Account takeover bounces back - After reaching a low point in 2014, both account takeover incidence and losses rose notably in 2016. Total ATO losses reached $2.3 billion, a 61 percent increase from 2015, while incidence rose 31 percent. Account takeover continues to be one of the most challenging fraud types for consumers with victims paying an average of $263 out of pocket costs and spending a total of 20.7 million hours to resolve it in 2016 – 6 million more than in 2015.\u003c/em>\u003c/p>\n","innerContent":["\n\u003cp>\u003cem>Account takeover bounces back - After reaching a low point in 2014, both account takeover incidence and losses rose notably in 2016. Total ATO losses reached $2.3 billion, a 61 percent increase from 2015, while incidence rose 31 percent. Account takeover continues to be one of the most challenging fraud types for consumers with victims paying an average of $263 out of pocket costs and spending a total of 20.7 million hours to resolve it in 2016 – 6 million more than in 2015.\u003c/em>\u003c/p>\n"]}],"innerHTML":"\n\u003cblockquote class=\"wp-block-nc-hc-quote-block gb-quote-block\" cite=\"\">\u003cdiv class=\"gb-quote-block__container\">\u003c/div>\u003c/blockquote>\n","innerContent":["\n\u003cblockquote class=\"wp-block-nc-hc-quote-block gb-quote-block\" cite=\"\">\u003cdiv class=\"gb-quote-block__container\">",null,"\u003c/div>\u003c/blockquote>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>What to look for in identifying an account takeover:\u003c/p>\n","innerContent":["\n\u003cp>What to look for in identifying an account takeover:\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/list","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cul>\u003cli>Change in the shipping address\u003c/li>\u003cli>Change in the email address\u003c/li>\u003cli>Change in password\u003c/li>\u003cli>Unreliable shift in purchase habits\u003c/li>\u003c/ul>\n","innerContent":["\n\u003cul>\u003cli>Change in the shipping address\u003c/li>\u003cli>Change in the email address\u003c/li>\u003cli>Change in password\u003c/li>\u003cli>Unreliable shift in purchase habits\u003c/li>\u003c/ul>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"29241fbe-07b9-4f00-99b0-773e5fd2974c"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"credit-card-fraud\">Credit Card Fraud\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"credit-card-fraud\">Credit Card Fraud\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Whether obtaining the credit card via account takeover, or physical theft, credit card fraud is very common. Once the payment is approved, the onus is on the business owner to properly identify the customer. This can lead to the victim of the credit card theft seeking to be paid back from the company directly.\u003c/p>\n","innerContent":["\n\u003cp>Whether obtaining the credit card via account takeover, or physical theft, credit card fraud is very common. Once the payment is approved, the onus is on the business owner to properly identify the customer. This can lead to the victim of the credit card theft seeking to be paid back from the company directly.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>This is a game of cat-and-mouse, with large companies staffing entire departments dedicated to loss prevention.\u003c/p>\n","innerContent":["\n\u003cp>This is a game of cat-and-mouse, with large companies staffing entire departments dedicated to loss prevention.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>For example, the national food chain, \u003ca href=\"https://www.pymnts.com/news/security-and-risk/2019/chipotle-hack-credential-stuffing-attack-kount/\">Chipotle\u003c/a>, recently had a problem with user accounts being stolen. The food ordered was charged on credit cards and sent to locations other than the billing address on file. This attack was a combination of credit card fraud, identity theft, and infiltration of weak passwords.\u003c/p>\n","innerContent":["\n\u003cp>For example, the national food chain, \u003ca href=\"https://www.pymnts.com/news/security-and-risk/2019/chipotle-hack-credential-stuffing-attack-kount/\">Chipotle\u003c/a>, recently had a problem with user accounts being stolen. The food ordered was charged on credit cards and sent to locations other than the billing address on file. This attack was a combination of credit card fraud, identity theft, and infiltration of weak passwords.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"53203bf3-3302-45ad-9859-3b41b3b82e80"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"identity-theft-account-takover-ato\">Identity Theft & Account Takover (ATO)\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"identity-theft-account-takover-ato\">Identity Theft & Account Takover (ATO)\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Similar to credit card theft, this method involves taking on a user’s identity either via an existing customer profile, or creating one from scratch using stolen identification data. Sometimes these account takeovers occur using data stolen from breaches in other online shops...\u003c/p>\n","innerContent":["\n\u003cp>Similar to credit card theft, this method involves taking on a user’s identity either via an existing customer profile, or creating one from scratch using stolen identification data. Sometimes these account takeovers occur using data stolen from breaches in other online shops...\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>When \u003ca href=\"https://techcrunch.com/2017/11/21/uber-data-breach-from-2016-affected-57-million-riders-and-drivers/\">Uber suffered an infamous data breach in 2016\u003c/a>, some riders saw mysterious travel appear on their accounts.This fraud affected over 57 million customers and drivers. Their private information including names, addresses and phone numbers were stolen. Uber at first denied the breach, but ultimately paid off the hackers to delete the data.\u003c/p>\n","innerContent":["\n\u003cp>When \u003ca href=\"https://techcrunch.com/2017/11/21/uber-data-breach-from-2016-affected-57-million-riders-and-drivers/\">Uber suffered an infamous data breach in 2016\u003c/a>, some riders saw mysterious travel appear on their accounts.This fraud affected over 57 million customers and drivers. Their private information including names, addresses and phone numbers were stolen. Uber at first denied the breach, but ultimately paid off the hackers to delete the data.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"fff10b06-1a64-458b-9b10-bf3cc26f2889"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"chargeback-fraud\">Chargeback Fraud\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"chargeback-fraud\">Chargeback Fraud\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Chargeback fraud occurs when the owner of the card commits the crime. The consumer purchases an item from your store and then claims the credit as stolen, requesting a chargeback after the items or services have been delivered. Originally created to protect the credit card holder from unfair business practices, cyber thieves can exploit this process to their own advantage.\u003c/p>\n","innerContent":["\n\u003cp>Chargeback fraud occurs when the owner of the card commits the crime. The consumer purchases an item from your store and then claims the credit as stolen, requesting a chargeback after the items or services have been delivered. Originally created to protect the credit card holder from unfair business practices, cyber thieves can exploit this process to their own advantage.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>The interesting aspect of chargeback fraud is its alternative name, friendly fraud. This term is used because sometimes the fraud is committed without the customer’s intention to commit a crime. An intentional fraudster will abuse this process to receive an item for free.\u003c/p>\n","innerContent":["\n\u003cp>The interesting aspect of chargeback fraud is its alternative name, friendly fraud. This term is used because sometimes the fraud is committed without the customer’s intention to commit a crime. An intentional fraudster will abuse this process to receive an item for free.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Chargeback happens when a customer circumvents going directly to the seller for a refund and immediately contacts their credit card company to request a their money back. A legitimate card owner will dispute the charge with their bank. The bank takes over the process and forces a refund, citing that the seller is in the wrong.\u003c/p>\n","innerContent":["\n\u003cp>Chargeback happens when a customer circumvents going directly to the seller for a refund and immediately contacts their credit card company to request a their money back. A legitimate card owner will dispute the charge with their bank. The bank takes over the process and forces a refund, citing that the seller is in the wrong.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Issuing a bank refund is not the same as requesting a return, but some customers do not know there is a difference. No matter the intention, the result is the same for seller.\u003c/p>\n","innerContent":["\n\u003cp>Issuing a bank refund is not the same as requesting a return, but some customers do not know there is a difference. No matter the intention, the result is the same for seller.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"bdc1fe47-404c-46d7-903a-464af42b8977"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"refund-fraud\">Refund Fraud\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"refund-fraud\">Refund Fraud\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>This type of fraud has a few layers of deception. Making a purchase with a stolen credit card, the criminal purposely overpays for the item. They then report an overpayment requesting reimbursement for the difference via an alternative method rather than the original credit card. If the business owner agrees to this, they are responsible to the card owner for the full amount of the charge on top of losing money for the refund.\u003c/p>\n","innerContent":["\n\u003cp>This type of fraud has a few layers of deception. Making a purchase with a stolen credit card, the criminal purposely overpays for the item. They then report an overpayment requesting reimbursement for the difference via an alternative method rather than the original credit card. If the business owner agrees to this, they are responsible to the card owner for the full amount of the charge on top of losing money for the refund.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Another aspect of refund fraud, known as a whitehouse scam, revolves around returning items in exchange for money or other items. For example in 2019, \u003ca href=\"https://abcnews.go.com/US/oregon-college-students-busted-making-900000-fraudulent-apple/story?id=62230592\">two college students in Oregon got caught defrauding Apple\u003c/a>. They claimed their iPhones were defective, ‘returned’ counterfeit iPhones the students received from China, and the company replaced these with real ones. The thieves cost Apple over $900,000 before they were caught.\u003c/p>\n","innerContent":["\n\u003cp>Another aspect of refund fraud, known as a whitehouse scam, revolves around returning items in exchange for money or other items. For example in 2019, \u003ca href=\"https://abcnews.go.com/US/oregon-college-students-busted-making-900000-fraudulent-apple/story?id=62230592\">two college students in Oregon got caught defrauding Apple\u003c/a>. They claimed their iPhones were defective, ‘returned’ counterfeit iPhones the students received from China, and the company replaced these with real ones. The thieves cost Apple over $900,000 before they were caught.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Sellers should keep track of serial numbers and customers that make a habit of opening claims with the company. Some larger operations will flag a customer account for suspicious activity.\u003c/p>\n","innerContent":["\n\u003cp>Sellers should keep track of serial numbers and customers that make a habit of opening claims with the company. Some larger operations will flag a customer account for suspicious activity.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/separator","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003chr class=\"wp-block-separator\"/>\n","innerContent":["\n\u003chr class=\"wp-block-separator\"/>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"stickyMenuId":"58d2ee79-af40-40e0-90da-02e47c1dd66e"},"innerBlocks":[],"innerHTML":"\n\u003ch2 id=\"methods-to-prevent-ecommerce-fraud\">Methods to prevent eCommerce fraud\u003c/h2>\n","innerContent":["\n\u003ch2 id=\"methods-to-prevent-ecommerce-fraud\">Methods to prevent eCommerce fraud\u003c/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>With so many methods of deception for theft, it can seem impossible to stem the tide of online thievery. That said, there are solid strategies to implement that can prevent most, if not all, of online fraud.\u003c/p>\n","innerContent":["\n\u003cp>With so many methods of deception for theft, it can seem impossible to stem the tide of online thievery. That said, there are solid strategies to implement that can prevent most, if not all, of online fraud.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>The first step, if you’re choosing a third party platform on which to host your business, is to choose one with a solid reputation for best practices in security.\u003c/p>\n","innerContent":["\n\u003cp>The first step, if you’re choosing a third party platform on which to host your business, is to choose one with a solid reputation for best practices in security.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Popular third party sites implement the security protocols necessary to verify customers and protect databases. A handy checklist to help you decide which platform or hosting company to choose should include:\u003c/p>\n","innerContent":["\n\u003cp>Popular third party sites implement the security protocols necessary to verify customers and protect databases. A handy checklist to help you decide which platform or hosting company to choose should include:\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"838d3118-d754-49cc-a2d2-057557fbef2c"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"secure-checkout\">Secure checkout\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"secure-checkout\">Secure checkout\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Implementing a \u003cstrong>CAPTCHA\u003c/strong> will stop almost all bot attacks in their tracks. \u003cstrong>CAPTCHA\u003c/strong> stands for \u003cem>“completely automated public Turing test to tell computers and humans apart”\u003c/em> and is one method to ensure your customer is a human being on the other end of that connection. This method demands that the user type the letters they see on the screen into a field box. Usually these letters and/ or numbers are visually jumbled and forces the customer to focus and assess what they are seeing on the screen. Sometimes controversial since the \u003cstrong>CAPTCHA\u003c/strong> can be difficult from a usability standpoint, it still remains as a good tool for preventing automated fraud and data leaks.\u003c/p>\n","innerContent":["\n\u003cp>Implementing a \u003cstrong>CAPTCHA\u003c/strong> will stop almost all bot attacks in their tracks. \u003cstrong>CAPTCHA\u003c/strong> stands for \u003cem>“completely automated public Turing test to tell computers and humans apart”\u003c/em> and is one method to ensure your customer is a human being on the other end of that connection. This method demands that the user type the letters they see on the screen into a field box. Usually these letters and/ or numbers are visually jumbled and forces the customer to focus and assess what they are seeing on the screen. Sometimes controversial since the \u003cstrong>CAPTCHA\u003c/strong> can be difficult from a usability standpoint, it still remains as a good tool for preventing automated fraud and data leaks.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"18a6f2e5-db39-44b6-a279-52c30e388cac"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"strong-passwords\">Strong Passwords\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"strong-passwords\">Strong Passwords\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Help your customers to secure their accounts with added levels of security. Encourage more complex passwords. While it seems quick and easy to create a memorable password from a few letters, use a system that only accepts longer characters with numbers and capitalization included.\u003c/p>\n","innerContent":["\n\u003cp>Help your customers to secure their accounts with added levels of security. Encourage more complex passwords. While it seems quick and easy to create a memorable password from a few letters, use a system that only accepts longer characters with numbers and capitalization included.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>It’s very common for individuals to re-use old passwords or take common ideas from a dictionary, birthdates, children’s names, etc. Encourage the use of password generators and such as \u003ca href=\"https://www.lastpass.com/password-generator\">Last Pass\u003c/a> and \u003ca href=\"https://passwordsgenerator.net/\">Passwords Generator\u003c/a> to help with this process.\u003c/p>\n","innerContent":["\n\u003cp>It’s very common for individuals to re-use old passwords or take common ideas from a dictionary, birthdates, children’s names, etc. Encourage the use of password generators and such as \u003ca href=\"https://www.lastpass.com/password-generator\">Last Pass\u003c/a> and \u003ca href=\"https://passwordsgenerator.net/\">Passwords Generator\u003c/a> to help with this process.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/image","attrs":{"id":980,"sizeSlug":"large","title":"how-to-protect-your-business-fraud-img2","sizes":[{"name":"medium","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2-600x337.png","width":300,"height":169},{"name":"large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2-1200x675.png","width":1024,"height":576},{"name":"thumbnail","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2-320x180.png","width":150,"height":84},{"name":"medium_large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2-980x551.png","width":768,"height":432},{"name":"placeholder","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2-20x11.png","width":20,"height":11},{"name":"full","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2.png","width":1921,"height":1080}]},"innerBlocks":[],"innerHTML":"\n\u003cfigure class=\"wp-block-image size-large\">\u003cimg src=\"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2-1200x675.png\" alt=\"\" class=\"wp-image-980\"/>\u003c/figure>\n","innerContent":["\n\u003cfigure class=\"wp-block-image size-large\">\u003cimg src=\"https://nc-resourcecenter.com/wp-content/uploads/2020/10/how-to-protect-your-business-fraud-img2-1200x675.png\" alt=\"\" class=\"wp-image-980\"/>\u003c/figure>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":3,"stickyMenuId":"377859c0-8ebc-4965-a9b0-1b54ec661569"},"innerBlocks":[],"innerHTML":"\n\u003ch3 id=\"credit-card-verification-address-verification\">Credit Card Verification & Address Verification\u003c/h3>\n","innerContent":["\n\u003ch3 id=\"credit-card-verification-address-verification\">Credit Card Verification & Address Verification\u003c/h3>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Verifying addresses and credit card value are other standards of compliance that will keep fraudsters at bay. The \u003cstrong>AVS, address verification system\u003c/strong>, cross-references the billing address of the customer with the information stored on the credit card system itself.\u003c/p>\n","innerContent":["\n\u003cp>Verifying addresses and credit card value are other standards of compliance that will keep fraudsters at bay. The \u003cstrong>AVS, address verification system\u003c/strong>, cross-references the billing address of the customer with the information stored on the credit card system itself.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>CCV, \u003cstrong>credit card value\u003c/strong>, is the familiar three digit code on the back of all credit cards. In compliance with PCI, the CCV data is never stored with credit card numbers on an online retailer’s database. With this security in place, hackers can’t acquire this information without actually stealing the card in real life.\u003c/p>\n","innerContent":["\n\u003cp>CCV, \u003cstrong>credit card value\u003c/strong>, is the familiar three digit code on the back of all credit cards. In compliance with PCI, the CCV data is never stored with credit card numbers on an online retailer’s database. With this security in place, hackers can’t acquire this information without actually stealing the card in real life.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":4,"stickyMenuId":"292d0464-d6ee-4e96-a9d6-fd09bf84b211"},"innerBlocks":[],"innerHTML":"\n\u003ch4 id=\"pci-compliance\">\u003cstrong>PCI compliance\u003c/strong>\u003c/h4>\n","innerContent":["\n\u003ch4 id=\"pci-compliance\">\u003cstrong>PCI compliance\u003c/strong>\u003c/h4>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>\u003cstrong>Payment Card Industry\u003c/strong> Security Standard Council, PCI for short, is a grouping of major global credit card brands that developed an industry specific protocol for protecting consumer data. What is now referred to as PCI Compliance, ensures that sellers follow PCI standards across the board when customers pay with their credit cards.\u003c/p>\n","innerContent":["\n\u003cp>\u003cstrong>Payment Card Industry\u003c/strong> Security Standard Council, PCI for short, is a grouping of major global credit card brands that developed an industry specific protocol for protecting consumer data. What is now referred to as PCI Compliance, ensures that sellers follow PCI standards across the board when customers pay with their credit cards.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>The upside of PCI Compliance being strictly enforced is that an online retailer can rely on their payment processor to handle all of these details. PayPal and others have built this compliance directly into their operations to take the pressure off the seller.\u003c/p>\n","innerContent":["\n\u003cp>The upside of PCI Compliance being strictly enforced is that an online retailer can rely on their payment processor to handle all of these details. PayPal and others have built this compliance directly into their operations to take the pressure off the seller.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>The PCI Security Standards Council’s website \u003ca href=\"https://blog.pcisecuritystandards.org/topic/educational-resource\">provides all the details to help you better understand this globally-used payment protocol\u003c/a>.\u003c/p>\n","innerContent":["\n\u003cp>The PCI Security Standards Council’s website \u003ca href=\"https://blog.pcisecuritystandards.org/topic/educational-resource\">provides all the details to help you better understand this globally-used payment protocol\u003c/a>.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":5,"stickyMenuId":"f6ae0f3f-0416-4baa-a641-a4b27b14fe8d"},"innerBlocks":[],"innerHTML":"\n\u003ch5 id=\"ongoing-fraud-detection\">\u003cstrong>Ongoing fraud detection\u003c/strong>\u003c/h5>\n","innerContent":["\n\u003ch5 id=\"ongoing-fraud-detection\">\u003cstrong>Ongoing fraud detection\u003c/strong>\u003c/h5>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>As a business owner, it is your responsibility to monitor all transactions as they come through. If something looks suspicious, it’s wise to put that purchase on hold until you can properly verify the payee’s origin.\u003c/p>\n","innerContent":["\n\u003cp>As a business owner, it is your responsibility to monitor all transactions as they come through. If something looks suspicious, it’s wise to put that purchase on hold until you can properly verify the payee’s origin.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"level":5,"stickyMenuId":"02c6f117-760b-496b-8a2c-e4aad997fe67"},"innerBlocks":[],"innerHTML":"\n\u003ch5 id=\"software-updates\">\u003cstrong>Software Updates\u003c/strong>\u003c/h5>\n","innerContent":["\n\u003ch5 id=\"software-updates\">\u003cstrong>Software Updates\u003c/strong>\u003c/h5>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Keeping your operating systems and all business related software up-to-date is a must for preventing hackers from exploiting any weaknesses. Running anti-virus software and installing new patches will keep your operation running smoothly.\u003c/p>\n","innerContent":["\n\u003cp>Keeping your operating systems and all business related software up-to-date is a must for preventing hackers from exploiting any weaknesses. Running anti-virus software and installing new patches will keep your operation running smoothly.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>When \u003ca href=\"https://arstechnica.com/information-technology/2019/03/severe-magento-bug-opens-300k-commerce-sites-to-card-skimming-attacks/\">Magento’s eCommerce software\u003c/a> revealed multiple flaws in their system that came about after fixing and patching previous issues, shop owners were made vulnerable to attack. If the shop owners using Magento did not update their software, they’d be left vulnerable to attack via payment card skimmers. The company publicly urged all clients to immediately update their software regularly to avoid such problems.\u003c/p>\n","innerContent":["\n\u003cp>When \u003ca href=\"https://arstechnica.com/information-technology/2019/03/severe-magento-bug-opens-300k-commerce-sites-to-card-skimming-attacks/\">Magento’s eCommerce software\u003c/a> revealed multiple flaws in their system that came about after fixing and patching previous issues, shop owners were made vulnerable to attack. If the shop owners using Magento did not update their software, they’d be left vulnerable to attack via payment card skimmers. The company publicly urged all clients to immediately update their software regularly to avoid such problems.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>If users made a practice of updating their software frequently, they would not have become vulnerable to this type of attack.\u003c/p>\n","innerContent":["\n\u003cp>If users made a practice of updating their software frequently, they would not have become vulnerable to this type of attack.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/separator","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003chr class=\"wp-block-separator\"/>\n","innerContent":["\n\u003chr class=\"wp-block-separator\"/>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"stickyMenuId":"3dcdbbf9-8b84-4a92-8b9a-f0fd698f4de3"},"innerBlocks":[],"innerHTML":"\n\u003ch2 id=\"risk-management\">Risk Management\u003c/h2>\n","innerContent":["\n\u003ch2 id=\"risk-management\">Risk Management\u003c/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>An ounce of prevention goes a long way, and so does a solid plan for understanding the traffic in online fraud. Every eCommerce shop owner will encounter an attempt at fraud at some point in the life of their business. Keep a record of all prior attempts at fraud. By tracking these you can see a pattern if there are repeated attempts from one source, or clear methods of attack.\u003c/p>\n","innerContent":["\n\u003cp>An ounce of prevention goes a long way, and so does a solid plan for understanding the traffic in online fraud. Every eCommerce shop owner will encounter an attempt at fraud at some point in the life of their business. Keep a record of all prior attempts at fraud. By tracking these you can see a pattern if there are repeated attempts from one source, or clear methods of attack.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Use this knowledge to prevent them from breaking through your defenses. Establish security protocols and train your employees on what to look for, especially around the holidays. Certain times of the year like Black Friday, Cyber Monday, Christmas, and whenever large purchases are commonly made, are a field day for online criminality. If your eCommerce shop does high volume at this time it might be easy to miss a few scams.\u003c/p>\n","innerContent":["\n\u003cp>Use this knowledge to prevent them from breaking through your defenses. Establish security protocols and train your employees on what to look for, especially around the holidays. Certain times of the year like Black Friday, Cyber Monday, Christmas, and whenever large purchases are commonly made, are a field day for online criminality. If your eCommerce shop does high volume at this time it might be easy to miss a few scams.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>It is wise to have a crisis management plan established in the case of if your business falls prey to an online fraud scheme. Having a set of actions to follow in terms of public relations and statements to customers and dealers will allow you to act swiftly on the public facing front while fixing the problems internally.\u003c/p>\n","innerContent":["\n\u003cp>It is wise to have a crisis management plan established in the case of if your business falls prey to an online fraud scheme. Having a set of actions to follow in terms of public relations and statements to customers and dealers will allow you to act swiftly on the public facing front while fixing the problems internally.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>In a damage control situation it is vital to counteract the situation that decrease your company’s brand value and trust. Stem the flow of significant loss and customer complaints by being prepared and understanding the conditions in which the fraud took place.\u003c/p>\n","innerContent":["\n\u003cp>In a damage control situation it is vital to counteract the situation that decrease your company’s brand value and trust. Stem the flow of significant loss and customer complaints by being prepared and understanding the conditions in which the fraud took place.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Trends in new ways of shopping will eventually lead to patterns emerging in fraudulent behavior. Credit card payments are still a mainstay of purchasing online, however, with the rise of PayPal, new competitors have come out in recent years. Venmo and Zelle are currently popular methods of buying online, especially since users are trending toward shopping via their mobile devices. It is vital that an eCommerce business analyze the information coming through when introducing a new payment option. Criminals will always test a new method for vulnerabilities and loopholes in the system.\u003c/p>\n","innerContent":["\n\u003cp>Trends in new ways of shopping will eventually lead to patterns emerging in fraudulent behavior. Credit card payments are still a mainstay of purchasing online, however, with the rise of PayPal, new competitors have come out in recent years. Venmo and Zelle are currently popular methods of buying online, especially since users are trending toward shopping via their mobile devices. It is vital that an eCommerce business analyze the information coming through when introducing a new payment option. Criminals will always test a new method for vulnerabilities and loopholes in the system.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/separator","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003chr class=\"wp-block-separator\"/>\n","innerContent":["\n\u003chr class=\"wp-block-separator\"/>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/heading","attrs":{"stickyMenuId":"30c91348-001d-4639-9343-889c0d76f3bd"},"innerBlocks":[],"innerHTML":"\n\u003ch2 id=\"conclusion\">Conclusion\u003c/h2>\n","innerContent":["\n\u003ch2 id=\"conclusion\">Conclusion\u003c/h2>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>Protecting your business, and customers, from online fraud is an ongoing job that should be at the top of every retailer’s list of priorities. Cybercrime is not going to go away. It will become more sophisticated and clever, thus it is up to the retailer to keep adjusting strategies as they go.\u003c/p>\n","innerContent":["\n\u003cp>Protecting your business, and customers, from online fraud is an ongoing job that should be at the top of every retailer’s list of priorities. Cybercrime is not going to go away. It will become more sophisticated and clever, thus it is up to the retailer to keep adjusting strategies as they go.\u003c/p>\n"]},{"blockName":null,"attrs":[],"innerBlocks":[],"innerHTML":"\n\n","innerContent":["\n\n"]},{"blockName":"core/paragraph","attrs":[],"innerBlocks":[],"innerHTML":"\n\u003cp>From following security protocols to hiring outside agencies to monitor and advise, protecting your endeavors from fraud doesn’t have to be overwhelming. Common sense and an understanding of what tools to use will keep your business safe from most attacks.\u003c/p>\n","innerContent":["\n\u003cp>From following security protocols to hiring outside agencies to monitor and advise, protecting your endeavors from fraud doesn’t have to be overwhelming. Common sense and an understanding of what tools to use will keep your business safe from most attacks.\u003c/p>\n"]}],"hero":{"id":1591,"title":"2020_SEO_How to protect your online business from fraud_DESKTOP_HB","sizes":[{"name":"thumbnail","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_DESKTOP_HB.svg","width":false,"height":false},{"name":"medium","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_DESKTOP_HB.svg","width":false,"height":false},{"name":"medium_large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_DESKTOP_HB.svg","width":false,"height":false},{"name":"large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_DESKTOP_HB.svg","width":false,"height":false},{"name":"placeholder","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_DESKTOP_HB.svg","width":false,"height":false},{"name":"full","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_DESKTOP_HB.svg","width":false,"height":false}]},"heroMobile":{"id":"1592","title":"2020_SEO_How to protect your online business from fraud_MOBILE_HB","sizes":[{"name":"thumbnail","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_MOBILE_HB.svg","width":false,"height":false},{"name":"medium","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_MOBILE_HB.svg","width":false,"height":false},{"name":"medium_large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_MOBILE_HB.svg","width":false,"height":false},{"name":"large","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_MOBILE_HB.svg","width":false,"height":false},{"name":"placeholder","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_MOBILE_HB.svg","width":false,"height":false},{"name":"full","url":"https://nc-resourcecenter.com/wp-content/uploads/2020/10/2020_SEO_How-to-protect-your-online-business-from-fraud_MOBILE_HB.svg","width":false,"height":false}]},"categories":[{"id":21,"slug":"security","title":"Security"}],"social_networks":[{"id":"facebook","label":"Facebook","url":"https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.namecheap.com%2Fguru-guides%2Fhow-to-protect-your-online-business-from-fraud%2F"},{"id":"linkedin","label":"Linkedin","url":"http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fwww.namecheap.com%2Fguru-guides%2Fhow-to-protect-your-online-business-from-fraud%2F&title=How%20to%20protect%20your%20online%20business%20from%20fraud"},{"id":"twitter","label":"Twitter","url":"https://twitter.com/intent/tweet?url=https%3A%2F%2Fwww.namecheap.com%2Fguru-guides%2Fhow-to-protect-your-online-business-from-fraud%2F&text=How%20to%20protect%20your%20online%20business%20from%20fraud"}],"sticky_menu":[{"label":"Types of Fraud","labelEdited":"Types of Fraud","level":2,"anchor":"types-of-fraud"},{"label":"Methods to prevent eCommerce fraud","labelEdited":"How to prevent fraud","level":2,"anchor":"methods-to-prevent-ecommerce-fraud"},{"label":"Risk Management","labelEdited":"Risk Management","level":2,"anchor":"risk-management"},{"label":"Conclusion","labelEdited":"Conclusion","level":2,"anchor":"conclusion"}],"seo":{"title":"How to protect your online business from fraud - 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How to protect your online business from fraud

You’ve likely heard the phrase “the customer is always right.” It’s a mantra for traditional business owners to show that they go above and beyond the call of duty for their clientele. To be fair, it’s a respectable way to go about building your customer base and there’s a reason that philosophy was the norm for the brick-and-mortar world of the last century.

However, new ways of doing business require another set of skills to help you prevent opening the door open for fraudsters, scam-artists and criminals.

Online businesses are becoming savvy about the tactics that cyber-criminals are employing. In this evolutionary arms-race, the criminals continually shift and pivot to even more sophisticated ways of phishing, hacking and outright theft.

Operating a digital storefront or other online venture without an understanding of modern fraud can be like walking through a minefield without protection. You must have strong tools and tactics in place for combating the risks. It’s crucial to prevent fraud and theft, especially when your business could be held financially responsible for any losses incurred.

Once you understand the types of fraud and what to do in case you’re business has been targeted, you are able to react in a swift and professional manner to stop any thieves from getting further with their plan!


Types of Fraud

There are numerous types of fraud that criminals can and will employ to disrupt your online business. The umbrella term for them is Online Fraud. This is when an individual or group targets an eCommerce or similar business with the goal of stealing money, customer data, or swindling in general.

Account Takeover

Customer accounts are commonly used at online stores like Amazon and Ebay to make it easy for users to come back and make purchases regularly.

A fraudster will begin by phishing for account information directly from your customer. This can take place in the form of a fake email that convinces the customer to hand over their login information. From there, they will change the password and proceed to make purchases and steal credit card information. According to a study released by Javelin Strategy, account takeover is on the rise.

Account takeover bounces back - After reaching a low point in 2014, both account takeover incidence and losses rose notably in 2016. Total ATO losses reached $2.3 billion, a 61 percent increase from 2015, while incidence rose 31 percent. Account takeover continues to be one of the most challenging fraud types for consumers with victims paying an average of $263 out of pocket costs and spending a total of 20.7 million hours to resolve it in 2016 – 6 million more than in 2015.

What to look for in identifying an account takeover:

  • Change in the shipping address
  • Change in the email address
  • Change in password
  • Unreliable shift in purchase habits

Credit Card Fraud

Whether obtaining the credit card via account takeover, or physical theft, credit card fraud is very common. Once the payment is approved, the onus is on the business owner to properly identify the customer. This can lead to the victim of the credit card theft seeking to be paid back from the company directly.

This is a game of cat-and-mouse, with large companies staffing entire departments dedicated to loss prevention.

For example, the national food chain, Chipotle, recently had a problem with user accounts being stolen. The food ordered was charged on credit cards and sent to locations other than the billing address on file. This attack was a combination of credit card fraud, identity theft, and infiltration of weak passwords.

Identity Theft & Account Takover (ATO)

Similar to credit card theft, this method involves taking on a user’s identity either via an existing customer profile, or creating one from scratch using stolen identification data. Sometimes these account takeovers occur using data stolen from breaches in other online shops...

When Uber suffered an infamous data breach in 2016, some riders saw mysterious travel appear on their accounts.This fraud affected over 57 million customers and drivers. Their private information including names, addresses and phone numbers were stolen. Uber at first denied the breach, but ultimately paid off the hackers to delete the data.

Chargeback Fraud

Chargeback fraud occurs when the owner of the card commits the crime. The consumer purchases an item from your store and then claims the credit as stolen, requesting a chargeback after the items or services have been delivered. Originally created to protect the credit card holder from unfair business practices, cyber thieves can exploit this process to their own advantage.

The interesting aspect of chargeback fraud is its alternative name, friendly fraud. This term is used because sometimes the fraud is committed without the customer’s intention to commit a crime. An intentional fraudster will abuse this process to receive an item for free.

Chargeback happens when a customer circumvents going directly to the seller for a refund and immediately contacts their credit card company to request a their money back. A legitimate card owner will dispute the charge with their bank. The bank takes over the process and forces a refund, citing that the seller is in the wrong.

Issuing a bank refund is not the same as requesting a return, but some customers do not know there is a difference. No matter the intention, the result is the same for seller.

Refund Fraud

This type of fraud has a few layers of deception. Making a purchase with a stolen credit card, the criminal purposely overpays for the item. They then report an overpayment requesting reimbursement for the difference via an alternative method rather than the original credit card. If the business owner agrees to this, they are responsible to the card owner for the full amount of the charge on top of losing money for the refund.

Another aspect of refund fraud, known as a whitehouse scam, revolves around returning items in exchange for money or other items. For example in 2019, two college students in Oregon got caught defrauding Apple. They claimed their iPhones were defective, ‘returned’ counterfeit iPhones the students received from China, and the company replaced these with real ones. The thieves cost Apple over $900,000 before they were caught.

Sellers should keep track of serial numbers and customers that make a habit of opening claims with the company. Some larger operations will flag a customer account for suspicious activity.


Methods to prevent eCommerce fraud

With so many methods of deception for theft, it can seem impossible to stem the tide of online thievery. That said, there are solid strategies to implement that can prevent most, if not all, of online fraud.

The first step, if you’re choosing a third party platform on which to host your business, is to choose one with a solid reputation for best practices in security.

Popular third party sites implement the security protocols necessary to verify customers and protect databases. A handy checklist to help you decide which platform or hosting company to choose should include:

Secure checkout

Implementing a CAPTCHA will stop almost all bot attacks in their tracks. CAPTCHA stands for “completely automated public Turing test to tell computers and humans apart” and is one method to ensure your customer is a human being on the other end of that connection. This method demands that the user type the letters they see on the screen into a field box. Usually these letters and/ or numbers are visually jumbled and forces the customer to focus and assess what they are seeing on the screen. Sometimes controversial since the CAPTCHA can be difficult from a usability standpoint, it still remains as a good tool for preventing automated fraud and data leaks.

Strong Passwords

Help your customers to secure their accounts with added levels of security. Encourage more complex passwords. While it seems quick and easy to create a memorable password from a few letters, use a system that only accepts longer characters with numbers and capitalization included.

It’s very common for individuals to re-use old passwords or take common ideas from a dictionary, birthdates, children’s names, etc. Encourage the use of password generators and such as Last Pass and Passwords Generator to help with this process.

Credit Card Verification & Address Verification

Verifying addresses and credit card value are other standards of compliance that will keep fraudsters at bay. The AVS, address verification system, cross-references the billing address of the customer with the information stored on the credit card system itself.

CCV, credit card value, is the familiar three digit code on the back of all credit cards. In compliance with PCI, the CCV data is never stored with credit card numbers on an online retailer’s database. With this security in place, hackers can’t acquire this information without actually stealing the card in real life.

PCI compliance

Payment Card Industry Security Standard Council, PCI for short, is a grouping of major global credit card brands that developed an industry specific protocol for protecting consumer data. What is now referred to as PCI Compliance, ensures that sellers follow PCI standards across the board when customers pay with their credit cards.

The upside of PCI Compliance being strictly enforced is that an online retailer can rely on their payment processor to handle all of these details. PayPal and others have built this compliance directly into their operations to take the pressure off the seller.

Ongoing fraud detection

As a business owner, it is your responsibility to monitor all transactions as they come through. If something looks suspicious, it’s wise to put that purchase on hold until you can properly verify the payee’s origin.

Software Updates

Keeping your operating systems and all business related software up-to-date is a must for preventing hackers from exploiting any weaknesses. Running anti-virus software and installing new patches will keep your operation running smoothly.

When Magento’s eCommerce software revealed multiple flaws in their system that came about after fixing and patching previous issues, shop owners were made vulnerable to attack. If the shop owners using Magento did not update their software, they’d be left vulnerable to attack via payment card skimmers. The company publicly urged all clients to immediately update their software regularly to avoid such problems.

If users made a practice of updating their software frequently, they would not have become vulnerable to this type of attack.


Risk Management

An ounce of prevention goes a long way, and so does a solid plan for understanding the traffic in online fraud. Every eCommerce shop owner will encounter an attempt at fraud at some point in the life of their business. Keep a record of all prior attempts at fraud. By tracking these you can see a pattern if there are repeated attempts from one source, or clear methods of attack.

Use this knowledge to prevent them from breaking through your defenses. Establish security protocols and train your employees on what to look for, especially around the holidays. Certain times of the year like Black Friday, Cyber Monday, Christmas, and whenever large purchases are commonly made, are a field day for online criminality. If your eCommerce shop does high volume at this time it might be easy to miss a few scams.

It is wise to have a crisis management plan established in the case of if your business falls prey to an online fraud scheme. Having a set of actions to follow in terms of public relations and statements to customers and dealers will allow you to act swiftly on the public facing front while fixing the problems internally.

In a damage control situation it is vital to counteract the situation that decrease your company’s brand value and trust. Stem the flow of significant loss and customer complaints by being prepared and understanding the conditions in which the fraud took place.

Trends in new ways of shopping will eventually lead to patterns emerging in fraudulent behavior. Credit card payments are still a mainstay of purchasing online, however, with the rise of PayPal, new competitors have come out in recent years. Venmo and Zelle are currently popular methods of buying online, especially since users are trending toward shopping via their mobile devices. It is vital that an eCommerce business analyze the information coming through when introducing a new payment option. Criminals will always test a new method for vulnerabilities and loopholes in the system.


Conclusion

Protecting your business, and customers, from online fraud is an ongoing job that should be at the top of every retailer’s list of priorities. Cybercrime is not going to go away. It will become more sophisticated and clever, thus it is up to the retailer to keep adjusting strategies as they go.

From following security protocols to hiring outside agencies to monitor and advise, protecting your endeavors from fraud doesn’t have to be overwhelming. Common sense and an understanding of what tools to use will keep your business safe from most attacks.



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