5 Shortcuts to Better Fraud Protection for Online Store

It is been evident that small businesses do not use enough fraud-prevention measures for the cause of cost-prohibitive. Yes, developing a risk management infrastructure is complicated and nuanced to meet today’s savvy and, technologically advanced fraudster.

Here are a few key practices merchants of all sizes can put in place to better identify fraud and prevent charge-back. 

 
Address Verification Service (AVS)

One of the best strategies to evaluate the validity of an order is using AVS data in conjunction with IP address, or other data points. How does this work? An IP address that is geographically close to the AVS address could be a sign that the order is valid. Not to deny, AVS matches can sometimes be misleading but essentially a full AVS match with a different shipping address is essentially meaningless.

Data Linking

A recent study confirms that “Big Data” is the best way to combat online fraud. This is why linking data is vital to protect a shopping cart. To brief it, it’s a simple method that can provide valuable insights about a customer’s order pattern and help you notice negative indicators: changing credit cards, order velocity, machine ID, and IP addresses that may have been used with other customer IDs.

Proxy Detection

Proxy detection is a very important first step in evaluating an order for fraud and such services are the most accurate way to detect a proxy. If you don’t plan to use such a service, simply doing a web search for IP address alongside keywords, such as “proxy,” will allow you to see if it is a current proxy on any public warning lists.

Geo Location

Geo location is a second data point that helps identify fraud. The endpoint of an IP address can tell you the location of the customer placing the order. Amidst the many free online services that can identify IP location, using it in conjunction with other data points like shipping or billing addresses and AVS results is preferable.

Hire an Expert

Hiring a third party expert can save you a lot of time and money. There are even a number of tools in the Magento app store, doesn’t matter whatever the size of your business or budget be.

As a whole, implementing these tips will help you protect your store against chargebacks and fraud.