5 Ways to Protect Your Digital Wallet From Fraudby Vesta E-Commerce Blog May 4, 2021
Your e-wallet, online voucher, or online gift card may be vulnerable to fraud. Notice the signs and take precautions after reading this guide.
As the world struggled with the COVID-19 pandemic in 2020, e-fraud has boomed. Mid-to-large sized American e-retailers of digital products have been hit the hardest. They’ve suffered an average of 650 fraud attacks each month in 2020.
Using e-wallet, online vouchers, and online gift cards increase payment fraud risks. Businesses must take action to fight back. Keep reading to learn five ways that your business can fight back.
What Is an e-Wallet?
Digital wallets or e-wallets let customers buy products using mobile phone apps. These apps store driver’s license numbers, and other numbers needed for payment. You can put these apps on smartphones, personal computers, and wearable devices.
Consumers can make contactless payments at any compatible point of sale terminal. Some ATMs also allow cash withdrawal when the app is near the ATM.
How to Implement e-Commerce Fraud Protection
Consumers today worry about the pandemic, their health, job stability, and the economy. There’s been more e-commerce buying as people physically distance. Merciless hackers have targeted 22 percent of Americans with COVID-19 fraud and identity theft.
The following strategies will help your business prevent and fight back against e-commerce fraud.
1. Identify Suspicious Behavior
Fraud prevention platforms include components focused on detecting fraud patterns. One example is a first-time buyer placing an unusually large order. This described a common behavior of someone using a stolen credit card.
If a consumer uses different payment methods for orders sent to the same address, red flags should go up. Also, beware of big orders with foreign shipping addresses. International laws make it harder to successfully fight fraud.
2. Establish Protocols to Check Website Security
Consumers are very comfortable with online shopping and using stored payment information. To protect your customer’s information, create secure, “HTTPS” sites. This makes it more difficult for hackers to steal information.
3. Use Decisioning Engines to Analyze Payments
Inaccurate fraud detection systems approve bad transactions and decline valid ones. You lose money due to fraud and may lose customers because of false declines.
Invest in a system that checks relevant purchase details. Vesta, for example, passes this information to an open application programming interface framework.
This uses a broad range of shopping cart plugins for its decisioning engine analysis. It looks at order, device, and payment information. Cardholder data and session behavioral attributes are also analyzed.
4. Use Smart Authentication Functions
It’s easier to make correct decisions about transactions when you have more data. For example, protection solutions with transparent data collection provide more user device information.
Trustworthy platforms use decisioning engines along with supervised and unsupervised machine learning. Together they can evaluate two trillion data points related to transactions. This provides the best, most accurate determination, and reduces fraud.
5. Establish a Separate Financial Data Workstation
You can reduce fraud risk by dedicating a workstation to business banking activities. Also, restrict access to this computer. This limits the hacker’s windows of opportunity to reach that data.
Always maintain a secure backup system for this computer. Be sure to erase the hard drive when it’s retired.
First appeared on Vesta’s Blog on eCommerce Fraud.