Holiday shopping comes with increased fraud. This is especially actual this year since COVID-19 has driven a rise in digital transactions, specifically, for retailers. To find ways to avoid online fraudsters and see how payment processors like eMerchantBroker can protect you from fraud, read the article below.
1. Keeping Your Business Away From Fraud: eMerchantBroker
According to TransUnion, 50% of U.S. consumers are worried about being victimized by online fraudsters this holiday shopping season. The global regions and U.S. cities have registered the greatest number of suspicious eCommerce transactions since the beginning of this holiday season.
Based on data from the research company Nexis Lexis, the cost of fraud is up 7.3% this year from 2019 for both online and offline U.S. merchants. Now, every $1 of fraud costs U.S. retailers $3.36 as compared to $3.13 a year ago.
Businesses now offer contactless shopping services to customers more often, and fraudsters are taking advantage of the increase in online transactions. So, quite logically, businesses are looking for ways to guard against online payment processing fraud.
That’s where a reliable and experienced payment expert like eMerchantBroker can help. This way, you can get the latest and safest fraud prevention techniques to protect your company from data breaches and avoid putting your payment data at risk.
2. How to Avoid Holiday Shopping Fraud
This year, consumer spending habits are significantly changed because of COVID-19. The data from Deloitte shows that 62% of consumers view online stores as the main holiday shopping locations.
This shopping season isn’t like any other you’ve seen so far. The rise in digital transactions has led to an increase in online fraud. How can you protect your business? Let’s see:
Expect novel attacks in any season of the year that may be associated with both social engineering and new ways to build synthetic identities.
Make sure your team know their roles and responsibilities to the best so that orders can get approved or declined, and suspicious transactions get detected.
3. Leverage a multi-layered approach built around physical and digital data and analytics.
Educate your staff so they can properly deal with disputes. Don’t fail to keep a proper record of all transactions.
4. Communicate a cutoff time frame for returns, higher value items, and restocking fees.
Ensure your customers are using strong passwords and reporting any suspicious activity right off the bat.
5. Put your fraud detection team on alert.
So, the holiday shopping season comes with a surge in sales, and correspondingly, in online transactions. This creates a fine opportunity for fraudsters to target consumers and businesses. The points above can help you prevent fraud and protect your business.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.