How often do you think about fraud and your business? Hopefully, you do give thought to it but don’t obsess about. It’s important to find the right balance between too much emphasis on a prevention strategy and being too lenient with your approach.
Given the current state of today’s evolving payments landscape, your card not present fraud prevention strategy is something that may require a review. The entire team at Verifi is focused on making it easier for you to run your business and to focus on what you do best. We would like to offer some guidance on how you can best manage your fraud prevention strategy, so we can do some of the heavy lifting for you.
Finding the Balance in Your Card Not Present Fraud Prevention Strategy
Ignoring the risks that fraud poses to your business can have disastrous consequences. It can be a daunting task finding the right amount of fraud prevention, especially in light of the glut of news reports about consumer fraud and card not present fraud seen so often.
Your customers may be concerned about doing business with card not present merchants. Your suppliers and third-party partners become anxious over the viability of your business. Your investors, credit card issuers, and your bank may offer up probing inquiries about your fraud prevention strategy and how you plan to respond in the event of a breach.
So, what is the solution? Taking on a tempered and balanced approach allows you to mix and match different fraud prevention tools to find the ideal solution for your business. What works for your competitor or for another business may not necessarily work for you. Just as you have a customised website, you need a customised fraud prevention strategy.
When thinking about your card not present fraud prevention strategy, consider our guidelines and consider how these do or do not apply to your business:
- Use the right tools for your business: This is where customisation is very important. Some of the tools we recommend for our clients include digital fingerprinting, device fingerprinting, merchant co-op, 3-D secure, post-billing chargeback alerts, facial recognition, and voice verification. Remember, when it comes to finding the right tool, selecting the cheapest option, the most popular option, or the most innovative option are, well, not necessarily the right options. Your choice must be the best option for your company.
- Use analytics to highlight the good and the not-so-good: Take advantage of data analysis so you can learn what is working and not working in your fraud prevention strategy. Using data analysis combined with pre- and post-sale views ensures that you are alerted to likely fraud risks before they happen. Know who you’re doing business with, what their purchasing habits and history are, and fine-tune your fraud prevention methods to balance the risk/reward of your strategy. It’s too easy to enforce an overly restrictive strategy, resulting in lost sales, a frustrating customer experience, and ultimately a loss of revenue.
- Move quickly to prevent fraud from happening: There is a need for speed here. The longer you wait to react and make a decision about your card not present fraud prevention strategy, the greater the risk to your business. Most businesses that believed they were protected found out the hard way that their fraud prevention strategy was not up-to-date, and as a result became targeted victims by fraudsters and hackers. It’s not easy to maintain pace with the changes in technology. While we can’t ever know what is coming next, we can predict the trends using the available technology and determine how you could be attacked, and then to provide you with a layered solution that works to prevent an attack.
Your Card Not Present Fraud Prevention Strategy
Remember, it’s your fraud prevention strategy. Perhaps you’ve experienced fraud due to stolen payment card data or fraudsters who have learned how to work around cookies—this points to learning about digital and device fingerprinting solutions. Or maybe you’ve had repeat chargeback fraud attacks from what appear to be legitimate marketing channels—this could mean you need to take advantage of merchant co-op. After reviewing your analytics and the technology you currently have in place, our team of experts might well decide that you may not need any of these tools in place but rather something completely different.
Verifi’s team of experts can help provide you with direction on how you can customise your card not present fraud prevention strategy, employing the right tools, at the right level, for the right situation.