Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.
Most credit card fraud prevent features are made for the face to face payment scenarios. But with the shift toward EMV chips, for securing and authenticating transactions, the fraudsters are focussing on card-not-present transactions. This is when the card payments are made without physical swiping the card, like the online payments. If people fall prey to card theft or identity theft, they can request their credit card provider to work on their behalf for reversing the fraudulent charges.
In the traditional online commerce model, where there is a buyer and a single seller, the issuing bank typically holds the seller or merchant liable for fraudulent charges that are made on the website. However, in this new state of eCommerce where an online platform combines several buyers and merchants, the specifics of the platform-merchant relationship decide who is exposed and liable.
There are also situations emerging on these online platforms when the fraudsters operate as merchant with the aim of defrauding the platforms and then disappearing before anyone realized what happened. This makes the platform responsible for the fraudulent charges. How can a platform owner gain protection against fraudsters? And when is it time to start doing it? Here are nine ways you can prevent the fraud losses for platforms and marketplace providers.
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Having two-factor authentication is important, especially when it comes to your online payment gateway. For every log-in, your device should have a two-factor authentication to secure your account. It will notify you whether the account is being accessed from another device that you are not familiar with.
2. Pick a Secure eCommerce Platform
Choosing a secure eCommerce platform such as XanPay will give you both security and peace of mind. As a business owner, you won’t be solely responsible for providing security and detecting threats. A third-party will help you out and also keep you safe.
3. Store Sensitive Information Safely
One of the highest-risk activities is when you store credit card numbers. Using third-party transaction partner that stores the payment details is often helpful in removing significant risk. It not only helps your business but also your customer base.
4. Educate Users About the Importance of VPNs and Security
You can take various measures to protect user data such as using SSL or storing data in the cloud. It is equally important to keep your customers well informed too. With the help of a VPN, updated browsers and security software, you can limit the possibilities of losing the customer data. Educate your users with the help of a monthly newsletter so as to help them take proactive steps to protect their assets.
Learn about the future of transactions in 2023 with our in-depth guide. 
5. Buy Cyber Liability Insurance
As more personal information is collected and stored through online transactions, organization that collect personal information and online payment information grow exponentially. Investing in cyber liability insurance coverage with the proactive security measures helps in offsetting the financial impact of a data breach as well as legal costs that occur from it.
6. Utilise a Personal Verification System
For high-ticket items, it is worth looking at a personal verification system. For instance, Airbnb uses a technology that allows users to verify themselves with a driver’s license or passport. The verified users are able to book rooms without having to wait for any confirmation.
7. Don’t Store the Customer Payment Data
One of the easiest ways of improving your online security when accepting payments is to get rid of payment data as soon as the transaction is finished. In case you need to store payment data, you can protect it from intruders by using a private network for storing it.
8. Look Out for Patterns
When it comes to online payments, you can often find patterns of fraud. More often than not, your third-party payment processor has security in place so that you can relax but every now and then you may face a fraudulent transaction. It is a good idea to train new employees of these patterns to watch out for.
9. Ensure Your Hosting Provider Has Safeguards
In the digital world today, you have to take extra security measures for accepting the online payments. Make sure that your web hosting provider has safeguards for such a scenario. It is a good practice to have a secure socket layer protection to encrypt any data that is inputted to your site. You may get a service such as Cloudfare to protect from any DDOS attacks.
Final Take
Fraud is a major concern for businesses of all sizes, and it's important to be prepared. While fraud prevention methods can't completely eliminate the risk of fraud, it can help you identify suspicious activity and respond quickly if something does go wrong. You'll want to ensure that your business has processes in place for handling fraud incidents and communicating with customers about them.
The most important takeaway is to avoid the element of surprise when it comes to fraud. If you're not on top of it, fraudulent activity can take time away from your normal business activities and can negatively affect profits, employee morale and your business's reputation. We hope that these tips will help you protect your business from online fraud.
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Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.
Asia-Pacific has grown into the world's largest market for cashless transactions. Find out what are the top APMs here.