When a business leverages online payment solutions, the risk of fraud comes along as a part of the deal. Fighting online fraud is a challenge because of the complexity of the moving parts and interconnected networks. The constantly evolving fraud techniques and growing sophistication of e-commerce make things even more overwhelming. Fortunately, monitoring and managing online payment fraud isn’t as tough as it appears, provided that you take the right approach. Here are the practical measures that can help you create an actionable strategy for dealing with the threat.
Know the customers
Knowing your customers can keep you one step ahead of the fraudsters as it can help you detect a malicious player at the earliest. Having an identity verification solution is essential for keeping an eye on frauds and stopping them right in tracks. It starts with well-established Know Your Customer (KYC) procedures right at the time of onboarding. Even as you have the procedure in place, ensure that it is simple and does not end up creating unnecessary friction in the customer journey.
Understand payment flows
With online payments, every single transaction has the potential for being fraudulent. So there is a need for a system that monitors, analyzes, and flags them through the start to end. Experts at HPS-Worldwide recommend collaborating with a payment solution provider that monitors activities in real-time and generates automatic alerts and actions. Real-time alerts empower the business to cease the transaction there and then and prevent the fraud before it happens. A refined rules-engine along with authentication procedures can be of great help.
Prioritizing a security mindset
More than anything else, you need to see security as a priority rather than just an add-on. Fraud monitoring and management should be adopted at an organizational scale, across all processes involved in digital payments. Remember that even the smallest vulnerabilities can put the fraudsters at a vantage position. Adopting specific solutions to stronghold security makes sense. These include tokenization, encryption and address and mobile ID verification.
Proactively address new fraud trends
Apart from identifying and addressing attacks in real-time, you also need to keep track of trends and stay one step ahead. This is where the use of AI-based predictive analytics and machine learning systems can help. A fraud analyst can help you pick an emerging trend in fraudsters’ behavior so that you can proactively use rules to prevent such incidents before they impact the business.
With payment fraud being a dynamic and evolving situation, awareness becomes the key to dealing with them effectively. Fraudsters are likely to come up with new techniques to hack the systems and may also quickly scale up the attacks. New payment systems, channels, and methods bring new opportunities for hackers. At the same time, providers are close on track with solutions to address the most sophisticated attacks. Knowing your challenges and opportunities can enable you to get better with fraud monitoring and management capabilities.
These steps can take you a long way in developing a robust fraud management strategy that offers protection for your business and customers. Implementing them sooner rather than later should be your top priority.
Read Dive is a leading technology blog focusing on different domains like Blockchain, AI, Chatbot, Fintech, Health Tech, Software Development and Testing. For guest blogging, please feel free to contact at email@example.com.