Fraud is a consistent problem for ecommerce businesses. But, just as there are many different types of fraud, there are also different types of fraud prevention. Whether you decide to maintain an in-house antifraud solution, or contract one out, there are no black and white blanket processes you can apply as a catch-all for fraud. Instead, strive to adhere to these basic principles to help keep fraudsters off of your site.
Make sure your system is flexible
An overly stringent fraud prevention system poses a risk of turning away genuine customers. If it happens often enough, you’ll face lower conversion rates and unhappy users. It can also limit your ability to expand into other markets – since new customers probably won’t match the fraud patterns you’re used to. Plus, fraud itself is extremely flexible; you’ll want a platform that can adjust accordingly.
Utilize “big data”
All of the trends, patterns, and insights you find in “big data” can be useful for establishing profiles that distinguish fraudster from customer. If you opt for third-party fraud prevention services, they should be able to compile and analyze this data.
Stay up to Date
As previously mentioned, fraud evolves rather quickly. To make sure your antifraud efforts are worthwhile, stay up-to-date on the latest trends in fraud, as well as fraud-fighting technology. Apply this knowledge when you train staff members.