In the modern world, credit card frauds are becoming more and more common. In fact, for every $1,000 that gets spent, about 50 cents get stolen. Sure, this may not seem as much but when you take into consideration that the e-commerce market alone is about $1,915 trillion big, you get the full picture of just how serious this problem actually is. Still, this is not just a global issue, seeing how a small business can’t possibly hope to have someone do business with them if they can’t guarantee the safety of their users. This being said, here are four ways to make your online business more resilient to credit card fraud..
1. Tracking the geolocation of your buyers
The first protective measure that you can take is to try to track the IP address of your regular customers in order to see if there has been a significant change of location. Of course, your customers may decide to buy while on a vacation or simply relocate. In order to avoid appearing overly protective, you can simply require an additional step of identification if they don’t make a purchase from their usual location. This can be something as simple as their security question (mother’s maiden name, the first school they attended, etc.) so that you don’t overcomplicate the process.
2. Maintaining PCI DSS Compliance
In order to make your company more reputable, you can look for a way to achieve a PCI DSS compliance. Still, keep in mind that achieving PCI DSS is not nearly as big of a problem as actually maintaining it. For this, you need all the help you can get, which usually implies getting someone experienced to aid you in this never-ending process. Seeing you your company does most of its work online, you might also want to consider getting certified for level 1 PCI DSS certified cloud based services or card storage.
3. Look out for anonymous proxy servers
Earlier on, we talked about tracking the location of your buyers through their IP address. Unfortunately, sometimes this won’t be entirely possible seeing how a fraudster might be using an anonymous proxy server in order to hide their actual location. Regrettably identifying a proxy server is quite difficult. Still, there is a way to identify users through a proxy server and thus protect your clients from this form of behavior.
4. Keep an eye out for ‘high-risk’ regions
Even though some may assume that this has a discriminatory aspect to it, in order to protect your clients you need to face the truth. Once you do this, you will notice that there is a pattern that most of these fraudsters follow and that there are some regions and countries that are labeled as high-risk. We are talking about countries such as Latvia, Egypt, Mexico, Ukraine and many others. Sure, the fact that a purchase is coming from any of these countries doesn’t have to mean much but it never hurts to stay alert when it comes to orders from these countries.
When it comes to running a successful online business, there are many issues that you need to look out for. Your IT infrastructure, your digital footprint, the customer support, and pricing are all equally important. Still, one issue that is always towering above them is the trust between you and your clients. If there is no trust present you aren’t likely to do any business. Luckily, by following just these above-listed four tips you can make your business much more resilient to this kind of fraudulent behavior and thus make it significantly more trustworthy.