Regina, SK - Idendego Inc., a developer and marketer of advanced personal and business online protection software programs, discusses the warning signs of fraudulent transactions. Online fraud attacks cost businesses and consumers worldwide many hundreds of millions of dollars annually, and the amount increases every year. Organizations across industries are looking for ways to secure login transactions, preventing unauthorized access to sensitive data and personal information that can be used to commit fraud and identity theft. With the increasing popularity of the Internet, online businesses have witnessed a massive increase in fraud. The Internet has made sensitive information both easier to obtain and easier to use to commit fraud.
Online entrepreneurs can and should defend themselves against fraud and do whatever they can to curb fraudulent transactions, identify the perpetrators, and report fraud to law enforcement authorities for investigation and prosecution.While you may not be able to recognize all fraud, there are some clues to watch for.
Look out for orders with the following characteristics:
- Placed late at night
- Orders for huge volumes of merchandise
- Address that does not match credit card billing address
- ISP in a different area than the customer's address
- Email addresses from free email programs that are not assigned an ISP
- Repeat purchases using a credit card number with different expiration dates
Requiring your customers to do too much to prove their identity may cause them to not make the purchase, thus lowering your profits. You will have to decide what steps to take, but consider these:
- Require customers to provide full information, including phone numbers and billing address.
- Consider calling customers using the phone number they provide in order to verify their identity and the fact that they placed the order. If you do this right, the customer will not mind, because they will view it as an attempt to protect them from identity theft.
- Use a database to block credit card numbers that are identified as high-risk.
- Ask for the security number on the card. On MasterCard or Visa cards, this is on the back on the signature lines. It is on the front of American Express cards.
- Consider blocking customer who use free email programs. Keep in mind that this will hurt many legitimate sales, because millions of people use these as their primary email addresses.
- Ask customers to use an online payment gateway like PayPal that provides some protection from fraud.
- Delay delivery until the payment clears.
- Never offer cash or check refunds. Some scammers will make a credit card purchase on a fraudulent card, then immediately ask for a refund via check or cash. If refunds are required, put the money back on the card.
"Business owners should go through this list, and put in place the protections they feel comfortable with. Remember, you may not be able to avoid all fraud, but with the right steps, you can prevent much of it, protecting yourself and your customers", Says Alena Pastuch.
About Idendego Inc.:
Idendego Inc. is committed to the development and marketing of state-of-the-
