Online businesses face a unique challenge compared to brick and mortar stores, as all the transactions that occur are “card not present.”
The 2017 Australian Payments Fraud Data Report found that card-not-present fraud has increased by 28% in 2016 alone.
It’s true that these are the hardest cases of credit card fraud to detect. However, there are things you can do to protect yourself.
This guide will highlight the red flags to look out for and the best security measures to protect your online business.
1. Watch Out for IP and Credit Card Addresses that Don’t Match
IP address stands for Internet Protocol address, which in simple terms is the identifying number for a network. You can research an IP address on google using online tools and compare the geographical location, with the address your customer has manually entered. If the two addresses don’t match you know there’s something not quite right!
TIP: Restrict IP addresses from countries where you don’t offer shipping.
2. Rush Orders that Need Overnight or Express Shipping
Overnight and express shipping is not an immediate indicator of fraud, but when this is combined with two different billing and shipping addresses, you are at a higher risk of a fraudulent transaction, be wary.
3. Suspicious Email Accounts
False email accounts can sometimes be easy to spot. If you have a funny feeling about an email or it looks something like this; firstname.lastname@example.org, chances are your instincts are right, and you should follow up on it. The same goes for any strange looking home addresses.
TIP: Research any suspicious addresses on google maps.
4. High-value Transactions On a Card Over a Short Period
You’re the one who knows your business best, so you can spot when a purchase is of an unusually high value. Keep a close eye on this type of activity as it can indicate fraudulent behaviour.
So, What Can You Do?
1. Strengthen Website Security Measures
Beyond the individual credit card transaction, pay attention to the security of your entire website and e-commerce processes as this will make it harder for fraud to occur in the first place. One of the most important ways to do this is to ensure your website is PCI compliant.
PCI DSS (Payment Card Industry Data Security Standards) is a set of requirements all businesses that process credit and debit payments must comply with.
To find out exactly what these requirements are Visit the PCI Security Standards Council’s website.
2. Team up With a Secure Payment Gateway
If you partner with a payment gateway that is PCI Compliant and takes security seriously, your business will also be protected.
The most vulnerable part of any transaction is the transferring of your customer’s data. To ensure the safety of this information you need to make sure your provider is up to the task.
Without a secure payment gateway, you are putting your company and the safety of your customer’s identification at risk.
Your payment gateway should hold the highest level of PCI compliance. Defined as a tier-1 service provider.
3. Sign Up with Safe2Pay
Security is at the heart of Safe2Pay’s payment gateway. As a tier-1 service provider, we take your safety seriously. We’re required to have annual third-party audits for PCI compliance and adhere to strict security guidelines.
When you sign up to Safe2Pay your business will also be covered by our vigorous precautions, taking away some of the security burdens so you can get on with running your business.
Safe2Pay not only fully adheres to PCI- DSS procedures but goes one step further by offering point-to-point encryption with unique tokenisation. Every payment Safe2Pay generates a one-time user token that masks customers real payment details and keeps their private information safe.
Contact Safe2Pay online or call us now on 1800 723 327 so that we can help you protect your online store from credit card fraud attacks.