5 Steps to a Better Fraud Prevention System
With new devices constantly entering the marketplace, and new fraud techniques continually being uncovered, it may seem like there's too much to handle when it comes to preventing fraudulent purchases. However, retailers shouldn't let fear drive them to create stringent rules which slow sales. A perfect balance between top-notch security and an emphasis on growth is the desired goal. Consider these steps to help you get there:
1. Make fraud prevention a part of your business strategy. The beginning of the year is a great time to set goals and work out how to get there; fraud prevention needs to be part of this conversation. Too often, companies sideline fraud as a single issue that can be dealt with by limiting the number of chargebacks received. Yet fraud prevention policies impact everything else in a business. For example, no retailer should spend money marketing a site to consumers in a foreign country if its fraud system is going to reject these new customers because their buying patterns don't match the ones with which the system is familiar.
Similarly, customer service needs to be prepared for the possibility that a customer may call to complain about being rejected as a fraudster. Fraud prevention isn't an isolated issue, and retailers shouldn't view it as one. The whole company should understand what's involved in fraud and fraud prevention so that all departments and individuals can take it into account when making their own plans and forecasts for the year ahead.
2. Knowledge is power, so don't get left behind. Fraud is a constantly evolving area, with fraudsters coming up with new ways to steal from companies all the time. Therefore, it's crucial that companies invest in a fraud prevention solution which will be able to innovate in the same way, keeping up with the fraudsters and making sure that they never get ahead. Technology designed to combat fraud is developing constantly, and new and more effective solutions are being rolled out. Retailers should familiarize themselves with these new technologies and possibilities so that they can make an informed decision about which ones are appropriate for their particular business.
