Online payments have revolutionized commerce and opened the doors for millions of businesses globally. With the ongoing pandemic, there has been an uptick in people shopping online and making digital payments. Naturally, eCommerce also opened the doors to online fraud. It is important to understand the risks in accepting online payments and knowing about security measures that can help protect a business.
95% of All Purchases Expected to Be Digital by 2040, Motivating Criminals to Become More Sophisticated
The global eCommerce market is huge. Sales brought in close to $4 trillion in 2020. It is expected that more than 95% of all purchases will be conducted through eCommerce by 2040. With such a high-value market, criminals are drawn and increase the risk of conducting transactions online. These fraudsters are becoming increasingly more sophisticated.
The risks mean direct financial losses, an increase in operational costs, and reputational damage to a business. Security should always be the first priority in eCommerce – especially when it comes to payment systems and personal data governance. Retailers and service providers need to be vigilant about security measures when setting up an online business. If you are a developer or an entrepreneur, you should consider these four crucial online payment security measures.
Choose the Right Payment Processor
The first step of being able to accept payments online is to find and partner up with a reputable payment processor. Emphasis should be made on security for peace of mind. That’s the reason why if you are playing online gaming then pay by boku casino is a good payment option for gambling sites. Damages made by fraud will be far more costly than the premium paid for a superior payment processor.
Become and stay compliant with industry standards like PCI DSS
As the pandemic hit, consumers were forced to go online for all their needs. As such, fraud surged during 2020 and is expected to grow during 2021. In industries involving large amounts of money, like gambling, the control is heavier, and the fraud trends have remained flat. One of the key reasons is that the businesses in this sector are heavily regulated and incorporate the highest online payment standards.
This includes staying compliant with Payments Card Industry Data Security Standards (PCI DSS). PCI DSS has a rigid framework of how transactions should be made, practices on how an entity receives, transmits, and stores sensitive payment data. Becoming and staying PCI DSS-compliant takes experience and resources which includes system vulnerability checks, training programs, and support.
Use an Address Verification System
Fraud can be greatly reduced by using an address verification system (AVS). The system verifies the billing address a person has entered against the cardholder’s data from the issuing bank. AVS is commonly used in relation to CVV2 verification, that 3-digit code at the back of a physical credit or debit card.
In a transaction utilizing AVS and CVV2, both sources need to match the entered billing address. If the AVS verification fails, it does not necessarily mean that the transaction is fraudulent. Likewise, a successful AVS verification does not guarantee a legitimate transaction. AVS is just part of a bigger puzzle in preventing fraud.
Use Data Analytics
Criminals always leave a trace. Traces of fraud, if analyzed, can form patterns. These patterns can tell of suspicious activity early on and raise red flags indicating fraudulent activity. For example, if multiple orders are placed using different credit cards from the same IP address. This means that a single individual is using multiple credit cards to make purchases.
This can be when a fraudster is in possession of stolen cards or gains access to card details through a data breach. Again, a single data point is not necessarily a sign of fraud but rather a piece of the security puzzle. Dedicating resources to collect data and then taking the time to understand it can greatly improve the chances of prohibiting fraud.