Don’t let fraudsters undermine your business this holiday season. NoFraud.com is a fully managed ecommerce fraud prevention solution. Today, they’re sharing how businesses can protect themselves against fraud and ensure a safe season online.
‘Tis the Season to be Proactive. As the changing foliage and dipping temperatures signal the arrival of autumn, elsewhere, activity is heating up as retailers prepare for a busy holiday shopping season.
They are not the only ones.
With the uptick in retail shopping due to the pandemic, fraudsters continue to enjoy an expanded playing field of mayhem and are poised to wreak havoc online again this year.
Attack attempts may be inevitable, especially for large well-known retailers, but focusing on the following five key areas will help ensure that your business is protected as the busiest, and most vulnerable time of year approaches.
1. Technology, technology, technology
First and foremost, if you conduct business online, then it is critical that all your systems, software, cybersecurity measures and anti-fraud software are up-to-date. As fraudsters become more specialized and sophisticated, retailers can no longer rely on basic in-the-box solutions to securing their data and processes.
With increased holiday sales traffic, it will be easier than ever for cyber-criminals to slip through the cracks, if those potential chasms are not secured by the most comprehensive and advanced solutions available.
Today, advanced software will stand guard, conducting real-time analysis of all online sales and patterns — flagging, blocking, and even terminating suspicious activity. NoFraud.com offers a one-stop solution that will allow you to focus on sales and sleep soundly as your business is protected.
To meet the swell of business during the holiday season, retailers often hire additional staff. This is not the time to slack off on training and management, even for those temporary hires.
Make sure that all new personnel are appropriately directed and supervised to ensure that company protocols and processes are followed. And even more importantly, that staff learns to detect any anomalies or irregularities in shopping or return patterns that can be flagged for fraud or breach. Ensure that they learn when and how to escalate any issues identified, so that they may be appropriately mitigated.
Beyond your own devices, the FBI maintains a sophisticated cybercrime website for the reporting of suspected fraudulent activity.
Consider the FBI your partners and allow them to do the heavy lifting when it comes to the investigation and prosecution of online fraudsters. Their website also provides up-to-date news and tips for protecting your business, especially during the busiest time of year. Visit Visit On the Internet — FBI for more information.
4. Mixed Shopping, chargeback and return tactics
Fraudsters are creative and will employ an array of malevolent tactics to steal your money and business. What has become known as m-commerce, or mobile-commerce, is set to surpass traditional desktop shopping this year, and it is important to pay attention to some of the most common forms of fraud.
Today, mobile crime accounts for up to 25% of online retail fraud. Businesses will also see an increase in digital gift card purchases, or even the employment of “mixed cart” tactics, such as the purchase and shipment of actual goods to a victim’s physical address coupled with the pilfered purchase of digital gift cards.
Many fraudsters will take advantage of fatigued employees, worn down by the heavy demands of the weeks leading up to the end of December, and attempt all sorts of schemes in person, on the phone, or via chats. And of course, the reliance on volume attacks using bots to overwhelm retailers’ systems, shutting down, blocking, or otherwise disrupting or corrupting the flow of and ability to conduct clean business during the holiday season. When it comes to returns and chargebacks, these are also areas to look at carefully, and allow for both human and anti-fraud software to analyze what is going on.
With a rush of returns and chargebacks set to occur during and immediately following the holidays, it pays to take the time to employ the most effective systems to ensure that fraud is not occurring. One of the most common crimes in this area is when people order and receive items, and then reverse the charges, with the promise of returning the original goods but never do. Pay close attention as this is one of the most damaging areas of fraud to businesses not only year-round, but especially around this time of year.
5. Human weakness
In-person shoplifting attempts are generally up with the expanded holiday traffic flow and crowding in stores, as well as supplementary in-store displays. It is simply put, easier to steal, and there are unscrupulous people out on the prowl for such opportunities.
At the same time, not everyone who ends up stealing is a common criminal. During times of desperation, people who under normal circumstances would never consider taking something that isn’t theirs, might be stressed enough to steal out of desperation. High stress circumstances such as unemployment, which in many cases is still being experienced across the country as the nation still grapples with Covid.
The same applies not only to customers who visit your brick-and-mortar locations but even staff, especially those hired seasonally who may not consider themselves part of the “team” and thus have an easier rationalization of their actions. Generally, online fraudsters are a more sophisticated and intentional set, whereas shoplifters may act impulsively. Consider fortifying your physical displays, internal security personnel, and security cameras.
The Bottom Line
The prolonged stress and tensions of Covid, coupled with the ever-expanding sophistication and specialization of the international efforts by cybercriminals during the busiest online shopping season of the year will make for a challenging period for online retailers. Like the boom-and-bust periods of yore, it can be an extremely lucrative time, or a time of great losses if businesses are not adequately prepared.
As the fraudsters of the world gear up for a busy season, shouldn’t you be doing the same?
To explore solutions to help protect your online business during the busy holiday season and throughout the year, contact NoFraud.com today.