Business owners face significant consequences from instances of fraud. That’s why they must be on guard 24/7 to prevent fraud impacting their business over the long term. There are multiple ways to take a proactive approach toward fraud prevention, and in this article, we’ll highlight 6 of the options business owners can choose to implement within their fraud mitigation strategies.
- Use an Address Validation SystemWhen a company is harnessing an Address Verification System within their payment service, they can ensure that the address of the credit card user matches the purchaser’s billing address. This helps prevent instances of the thief simply using the person’s name and credit card information to commit fraud.
- Pay Attention to Rapid Delivery OrdersOne clear sign of fraud is when the person ordering the product requests rapid delivery. Companies should take great care when granting requests for expedited delivery and only do so when they’ve checked the person’s billing address against their credit card information.
- Carefully Review Large OrdersOftentimes, a fraudster will try to complete many large orders quickly before the credit card they’re using is canceled by the owner. This means that business owners may see several larger orders being made on theirs site on a short space of time. This type of event should be examined carefully to ensure the order is made by a legitimate buyer.
- Keep Comprehensive Written RecordsBusiness owners should maintain comprehensive written records on the orders completed via their site. They should also keep a record of any contact made with a customer concerning their products. This information should be stored safely and should be quickly available in the event of a security issue.
- Create a Fraud Prevention PolicyBy building and showcasing a fraud prevention policy for their website, business owners can deter fraudulent activity. Criminals will be less likely to try to use a site to commit fraud when they know the site owner has active fraud detection systems in-place.
- Don’t Hesitate to Cancel Orders if an Issue is SuspectedMany business owners take a relaxed approach to fraud, instead preferring to allow sales to go through, even if they suspect the buyer isn’t legitimate. However, that one sale can have a significant impact on the business and on its customers. It’s better to cancel a suspicious order than have to rebuild the entire business due to fraud-related losses.
To learn more on the full range of ways business owners can prevent credit card fraud, speak with our trusted experts today!