It is no news that retailers have experienced thefts before. This is because con artists still prey on internet buyers and the businesses they support, even if customers cannot physically steal products from stores.

While internet shopping has been around for a while, the rise in fraud in recent years is a direct result of this trend. When people purchase online, their credit card details and other personally identifiable information (PII) are readily available to cybercriminals, who use this information for their ends.

Any fraudulent practice that affects business transactions done over the internet in order to get monetary benefit is known as electronic commerce fraud or e-commerce, so you need to identify the best e-commerce fraud prevention solution in order not to get scammed. Usually, two parties fall prey to payment fraud: the merchant and the consumer. Due to this type of fraud, both consumers and businesses lose money, which is why you should aim for better e-commerce fraud protection.

While consumers' personal information and credit card details are at risk, their funds are safe. Fraudulent purchases may result in chargebacks and other fees, which the merchant must pay. If you want to find out more and understand the topic better, give this article a go.

1.    An Efficient E-Commerce Fraud Prevention Solution Is to Conduct a Thorough Examination of High-Risk Orders

Nowadays, there is professional software for online stores that can identify potentially dangerous orders. However, if the orders seem suspicious, an efficient e-commerce fraud prevention solution is to check them by hand and contact the buyer for clarification if necessary.

It is essential to manually verify low-value orders received from strange IP locations and contact the client for additional verification if necessary. The likelihood of the order being placed using a stolen credit card increases in the event that you do not get a response.

Whether you want to know whether a potentially fraudulent online purchase is really a fraud, you may look at the buyer's past purchases. For example, an American customer's one transaction via a Spanish IP address may not raise any red flags. A hacked account is often the cause of huge orders placed from an unfamiliar location using an unfamiliar payment card.

It is essential to identify which are reliable clients and which are scammers. An actual client who was mistakenly marked as fraudulent might have their experience negatively impacted if you were to accept a false positive. Online buyers will be quick to go on to other merchants if their orders are denied.

2.    For Better E-Commerce Fraud Protection, Make Your Policies Easy to See on the Web Platform

To outline the inner workings of your company and for better e-commerce fraud protection, you should have policies posted on your website. Stop any suspicious activity in its tracks by displaying transparent rules on your website rather than vague terms and conditions. That encompasses:

• Enforce stringent policies on password security: The ease with which fraudsters may perform account takeover fraud depends on how vulnerable a customer's login credentials are. Implementing a password policy is highly recommended in conjunction with two-factor authentication. Password restrictions may be annoying to some consumers, but they significantly reduce the likelihood of account hacking by fraudsters.
• Policy on returns: When consumers ask for refunds or chargebacks, you may strengthen your case by having a robust return policy. Outline the procedure for processing returns (whether it is a cash refund, an exchange, or shop credit), the necessary paperwork, and the items that are eligible for a return.
• Promotions and incentives policies: This e-commerce fraud protection method can have the power to support any online fraud that violates your promotion's terms and conditions, such as limiting order quantities or banning the sale of reward points.

3.    Create a Blocklist

Even if you manage to apprehend a con artist only once, it does not guarantee they will not do it again. In order for their fraudulent orders to go unnoticed by merchants, fraudsters might attempt to change their identity, mailing address, or payment card.

Nearly 27% of businesses use blocklists as an e-commerce fraud prevention solution to stop repeat fraudsters from using their websites to conduct fraud. It is a record that includes addresses, IP addresses, credit card numbers, and names that are known to be associated with fraud. The system will immediately reject any future orders that include any of the specified information, which is why it is considered an efficient e-commerce fraud protection strategy.

Be cautious when using blocklists since they may prevent fraudulent orders from being completed. Inadvertently using a credit card that has been reported as fraudulent could happen to a genuine client. Once the proposal to be removed from a blocklist is accepted, blocking their order without providing a reason will only lead to uncertainty and irritation, which will likely discourage them from making future purchases.

4.    Restrict the Amount of Orders

When customers place large orders, it can be a sign that fraudsters are trying to use stolen credit cards to buy things from your online business.

A good e-commerce fraud prevention solution is to put a limit on the number of units a buyer may purchase to reduce the possibility of these orders being fulfilled. Learn your "normal"—the typical daily sales volume—by reviewing your sales records. You may reduce the likelihood of fraud occurring via your online business by automatically blocking orders that exceed this amount.

5.    Use Professional Verification Software

Inconsistencies between a consumer's billing, shipping, or credit card information are a red flag for online shopping fraud. For better e-commerce fraud protection, you should use verification software to detect orders that trigger this alarm, including:

• The number that verifies a card (CVN): If you want to take online shopping security to the next level, you should make the three- or four-digit PIN (CVN) a mandatory field. With over 50% of merchants using it, it easily ranks as the most popular e-commerce fraud prevention solution.
• Use the AVS mechanism to verify addresses: As a result, the billing address of the consumer is double-checked with the credit card company. One way an ASV may capture fraudsters is by detecting when they use several cards to pay for the same item.