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Is Your Ecommerce Operation Ripe For Fraud

2017-04-11by Dave Thomas

As more and more businesses turn to Ecommerce, it is important that they also ratchet up their efforts when it comes to preventing fraud.

 

No, most sales you do over the Internet will in fact go through without any hitches (at least in terms of fraudulent activities), but that does not mean fraud can’t and/or won’t take place.

 

So, if you’re running an Ecommerce operation as part of or the entirety of your business, should you be concerned?

 

In discussing the term concerned, let it be known that you should not obsess over the matter, though that doesn’t mean turn a blind eye to it either.

 

With that in mind, what are some of the red flags you should be on the lookout for moving forward?

 

Knowing When Chargebacks Are Becoming a Big Problem

 

So that you can have as successful an Ecommerce operation as possible, knowing the potential red flags that can surface is critical.

 

For instance, what if you begin to receive a number of chargebacks?

 

For anyone out there not familiar with the problem, chargebacks are simply when a customer ends up refusing to follow through with a payment. Yes, many of these chargeback matters can be totally legitimate (change of heart in making the purchase, wasn’t happy with it when they received the product or service etc.), while others can be fraudulent.

 

In terms of when the latter issue can rear its ugly head, you should be doing all you can in avoiding customer chargebacks.

 

Remember, a chargeback here and there is one thing.

 

When they start to add up over time, you will not only see a financial hit on your business, but you ultimately could end up losing your charging privileges as a business owner sooner rather than later.

 

If you see a pattern developing with chargeback issues, do your best to nip it in the bud before it gets entirely out of control.

 

Avoiding Successful Hacking Intrusions

 

If you think multiple chargebacks are a problem (and they are), you definitely do not want to be the Ecommerce site that is hacked once or more.

 

Unfortunately, today’s digital age means that hacking businesses (and consumers for that matter) takes place more often than it should. As a result, business owners and consumers end up taking the financial fall more times than not for this sizable problem.

 

If your Ecommerce site doesn’t have a strong security software system in place, you are already asking for trouble.

 

Even though one can assume you have some sort of security platform operating for the Ecommerce end of your company, is it as good as it should be?

 

Along with regularly testing your system to look for any holes in it, make sure your employees (if you are not running a one-person show) are very cognizant of how important it is to safeguard customer data.

 

This also means making sure each employee does not give out their work usernames/passwords each time they are online.

 

Learn from What Others Are Doing

 

Lastly, do your best to see what other Ecommerce operations are doing to protect themselves from different fraudulent attacks

 

Although there is no 100 percent security solution out there, especially given how some Ecommerce fraud can be committed right under your nose from employees, you can do lots to safeguard your operations.

 

At the end of the day, while you likely find fraudulent chargebacks and hacking to be a sizable pain in the butt, you can lessen the odds of both occurring with some smart business maneuvers.

 

Yes, the time and effort needed to safeguard your Ecommerce operations can prove taxing, but do you really have any other alternative?

 

As someone operating an Ecommerce business, what tips do you have for fellow business owners looking to put a stop to fraudulent activities?

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Dave Thomas

Dave Thomas covers a wide array of subjects, among which include marketing, small business, and social media.

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