15 Oct

5 Ways to Make Your Fraud Protection Better

When running a Magento store, security should be one of your foremost priorities. If you’re asking why, the answer is simple: If your online store visitors don’t feel secure entering their payment details, how can you sell anything?

Aside from ensuring a secure online payment system for your customers, another security strength that you must focus on is fraud protection. Online fraudsters are not only scheming but also technologically skilled. Therefore, as an e-commerce store owner, you have to keep up with them.

A lot of fraud protection techniques are available in the market. While some of them have prohibitive costs, there are also cost-effective alternatives that can toughen up your online shop against these fraudulent individuals. Here are five ways to boost fraud protection in your e-commerce website:

Proxy detection
Checking for suspicious proxies is a good first step in fraud protection. While there are services available to evaluate proxies in your system in real time, you can do it for free by checking suspect proxies via a quick Google search.

Geo location
Identifying the real location of your customers will give you a sense of security that the transaction is legit. Check the endpoint of an IP address to determine which geographical location the online purchase is being made from. Free IP locator services abound online, so you only need to look them up. Of course, the results may be skewed a bit if the buyer passes through a proxy.

Address Verification Service
Similar to geo location, address verification service (AVS) evaluates the personal address of the customer and cross-checks it with the entry on the database. This service is used by credit card companies to confirm the validity of a purchase. You may also want to consider this for your Magento store.

Data Linking
Databases exist for a very important reason: archiving and filing. Past order data, for instance, can tell you if a particular customer is fraudulent – frequently changing credit cards, unusually large orders in a short period of time, or IP addresses that are not unique. Linking these data can give you an idea about the validity of a transaction.

Expert Consultation
You can always form a risk assessment and management team within your company, but a better alternative – and one that many store owners are already opting for – is to hire an external party to do the fraud evaluation and protection. Experts in Magento fraud protection are highly skilled and ensure that your business is always up and running without fear of suspicious orders and chargebacks.

Follow these five tips to help protect your Magento e-commerce store against fraud.

[Photo courtesy of Don Hankins on Flickr]
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