Things To Look For In A Fraud Detection Solution For Your E-Commerce Website

fraud detection solution e-commerce website security

It is imperative to prevent fraudulent activities from taking place to conduct smooth online transactions. Most of the e-commerce websites hire third-parties to provide a complete protection package to detect online frauds. Fraudulent charges are a recurring menace with websites that do not have an effective fraud detection solution. 

There are mainly three types of online scams; triangulation scam, interception scam, and account takeover scam. 

Triangulation Scam

This involves three parties, the crook, the e-commerce website, and the genuine buyer. A fake website purposefully offers products at lower prices. A genuine buyer visits such a website and places an order by giving his card details. Then the fraudster steals the card details and buys the same product from a legitimate e-commerce website. 

Interception Scam

In this fraudulent activity, the felon buys products by using stolen card credentials. Here, the real cardholder is unaware of their card details being misused. 

Account Takeover Scam

The genuine cardholder’s credit card details are hacked and misused by the imposter in this activity. It is also known as identity theft. 

Now, to protect the unsuspected legitimate buyer, fraud detection solutions must be incorporated into every e-commerce website. There are a few essential things you must look for in the fraud detecting solution. 

Supports Payment Methods For Different Worldwide Locations 

Limiting payment methods will reduce the conversion ratio of your customers. For instance, in European countries, many e-commerce sites accept only single card payment and non-U.S. cards for online transactions. This will hurt your conversion ratio. 

It is best to get a fraud detection solution that checks the card origin, GEO IP, device IP, and payment velocity. It is useful to uncloak the proxies, block fake cards, and prevent fraudulent charges. 

Adheres To PCI Standards And Has SSL Certification 

For protecting and securing all the transactions made by your customers, your website must conform to the PCI standards (Payment Card Industry)

Along with this, your website must also be SSL-certified. It will safeguard a secure connection for online business and encrypt the data in transit. Sites with an industry leading Symantec SSL certification will be more secure than most, leading to improved visitor security and better website SEO as well.

Stresses On Using Strong Passwords And Uses AVS 

It isn't very reassuring to customers when asked to use a stronger password. But, a small dialogue box with an explanation of why it is required will help the customers understand that it is for their benefit. 

Likewise, the Address Verification System (AVS) will also help in securing online transactions. It verifies whether the billing address is the same as mentioned on credit cards that the company has on record. It will prevent hackers from making fake transactions and victimizing the cardholder. 

Offers Multi-Layered Protection 

Fraud detection is easy, with a multi-layer approach to detect and prevent fraud. Every e- commerce website gathers real-time data from the consumer. It helps in studying the behavioral analysis of the buyer. 

The integration of this multi-layer approach into the detection software helps in spotting anomalies in real-time profiles. Once the unusual behavior surfaces, the software will detect and will prevent fraudulent charges. 

Additionally, the use of artificial intelligence and machine learning applications will support self-learning techniques and monitor consumer behavior while transactions take place. It will automatically detect fraudulent activity and prevent it while securing and authenticating valid transactions. 

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