E-commerce fraud losses are suspected to surpass $20 billion by the end of the year, according to a Juniper research report.
No matter whether you have a small online clothing store or you ship trading cards around the world, you need to put measures in place to fight e-commerce fraud.
In this blog post, we will take a look at how you can find the best fraud detection software to fight e-commerce fraud.
What is e-commerce fraud?
E-commerce fraud describes a situation whereby a criminal will leverage fraudulently acquired credit card or bank accounts or stolen payment information for the purpose of trying to make retail transactions without the owner’s awareness.
There are a lot of different types of e-commerce fraud. One of the most common types involves a fraudster purchasing high-end products, like gift cards, jewelry, and electronics, yet doing so in a manner that causes less suspicion when checking out. For example, they may set up an online profile with the business and keep the profile established for a while before the big purchases are made.
Strategies like this are designed to ensure that fraud triggers are not set off when someone checks out. This highlights why it is more important now than ever before to have effective fraud detection software in place.
How does fraud detection software work?
Fraud detection software is designed to help with monitoring, investigating, and blocking fraudulent activity on your website.
It is regularly used for the purpose of preventing fraudulent transactions that are made with credit card details that have been stolen.
Businesses can also depend on fraud detection tools for confirming user IDs during sign-up and log-in.
Finding the best fraud detection software for your business
There is a lot that you need to consider when looking for the best fraud detection software. Here are some of the key factors to take into account:
Make sure you select a provider that uses cutting-edge technology
There is only one place to begin, and this is by making sure that the software delivers the best technology and tools to detect and prevent fraud. After all, you need to have the peace of mind that you’re getting elite-level protection.
The likes of SEON’s fraud detection software is a great example here. It incorporates some of the best features around, including a way to check 40+ social media networks for related user information, phone number or IP address, complete data enrichment based on an email address, and in-depth device fingerprinting.
When it comes to fighting fraud, there is a five-layer approach that is recommended. Therefore, you need a solution that is going to provide you with numerous protection layers. The layers are as follows:
Level 1 – This is end-point centric, incorporating geolocation, the device the user is using for the transaction, and user authentication.
Level 2 – This is navigation-centric, which means that consumer behavior during a specific session is assessed for anomalies.
Level 3 – This is channel-centric, and it assesses account activity for anomalies.
Level 4 – This is cross-channel and cross-product, and it involves monitoring entity behavior across bank products and channels.
Level 5 – This is entity link analysis, which is about assessing connections between various transactions or users.
Aside from the factors that we have mentioned above, you also need to consider customer support.
Make sure that you can reach the software provider with ease if you have any challenges when managing the product or asking more questions.
Ask the vendor about the on-boarding process and service-level agreement to find out what sort of technical support you should expect from the provider, as well as how to get in touch if you have any problems you want to report.
It is also worth asking under what circumstances the services would not be provided, as well as what the average response time is.
You also need to make sure that the software is compliant with all of the security standards that are in place.
We advise keeping a list of all of your company’s compliance requirements handy when you are vetting the different fraud detection tools, and you can ask the vendor to provide documentation that showcases the compliance provided.
Integration and deployment
Aside from the points mentioned above, you should find out more about the ease of deployment and average deployment times.
Some websites have discussion sections and forums whereby users provide their feedback on the software, and you can also look on industry review websites themselves for further information.
Make sure you spend some time reading reviews on independent feedback platforms so that you can find out more about any common issues or deployment pitfalls.
Integration is another factor to consider. For example, if you have an e-store, you need to make sure that the tool you choose is compatible with your e-commerce platform.
Last but not least, price is a critical factor when you are making any sort of business purchase, fraud detection software included.
We would never recommend simply looking for the cheapest software possible. Price should not be your determining factor because you will end up suffering much greater losses in the future if you do not protect your data and your customers’ confidential information.
Yes, make sure that you can afford the solution, but let the other factors guide your decision. It is worth pointing out that some providers may offer discounts if you sign up for a longer period (should the billing work on a per-year basis).
Final words on fighting e-commerce fraud with the best fraud detection software
So there you have it: an insight into some of the best tools out there to help you to fight e-commerce fraud.
This is one of the biggest problems facing e-commerce businesses today, and so it is imperative to put measures in place to ensure that your business and your customers are protected. Your future counts on it.