Here are 6 Tips on how to protect your eCommerce site from online fraud. This list should help you get started on a solid security plan.
Cyber Liability Insurance
Risks can be minimised with good standards and practices but if security threats are realised, you might find yourself being liable. Therefore, depending on your risk level, opting into cyber liability insurance might protect you against unwanted payments and legal action.
Cyber liability covers a variety of incidents depending on the provider but in most cases covers for:
- Public relations costs such as customer data loss or leaks
- Investigation costs
- Financial loss due to data crimes
- Fines due to security breaches
- Legal costs
- Extortion costs
There are many providers for cyber liability which offer a range of covers. For more information on cyber liability insurance, a recommended start would be: Bluewell Cyber Liability Insurance
Choose a Well-Supported eCommerce Platform
Many underlying issues can occur in terms of online fraud when it comes to managing your site and online content. Therefore, having your site on an eCommerce platform gives you the benefit of having security and support against online fraud.
These platforms usually manage security levels and have updated systems that can protect your site against attacks. This would give you not only a cost-effective way of managing your security but also valuable support whenever you need to settle an issue.
Here are some great CMS and eCommerce sites which you can start your online store on
PCI DSS Compliance
Payment Card Industry Data Security Standard is a designed set of procedures and requirements that ensure companies which handle credit card information must maintain a secure environment. PCI DSS is designed to protect customer data; hence, it is important to maintain compliance with the PCI standards and practices.
Fortunately, most payment gateways and eCommerce platforms are PCI compliant, therefore, managing your content via a platform or managing payments via a payment gateway gives you the security of being within legal boundaries.
You can find more information about PCI and compliance here.
Address Verification System
This is an anti-fraud tool which ensures that the billing or shipping addresses entered by a user in an account or order, is an existing and verified address. This is why often you are asked to enter a billing and shipping address before performing a transaction on popular eCommerce sites.
Payment gateways and eCommerce platforms offer address verification however, you may need to check on this in case it has to be integrated or applied externally.
User Credit/Debit Card Security Codes
These security codes on physical credit/debit cards ensure that the card is in the possession of the owner or has not been flagged for fraud or been stolen. Using this information can help your transactions be safer and more reliable. However, it is important to know that PCI DSS compliance prevents merchants and online store form storing the security codes of credit cards and this is one of the reasons the security codes entry helps prevent fraud.
Here are some examples of where you might find these codes on a card:
- Visa: CVV2 located in the back of the card next to the signature
- MasterCard: CVC2 located in the back of the card next to the signature
- American Express: CID the 4 digits located above the card number
Educate your Staff on eCommerce Security
As an owner you can ensure the safety of your site via technology or management, however human error or negligence is a continuous risk.
Educating your staff on security compliance, online fraud, cyber threats, and fraud detection can have benefits in terms of preventing online fraud. Therefore, it is advisable to train your staff on best practices and educate them on standards to maintain a secure online environment.
The methods mentioned in this article are some of the basic methods you can utilise for better online security. Other possible methods which should be mentioned are.
- Order tracking
- Terms and conditions acceptance
- Set purchase limits
- Advising your customers to create stronger passwords
- Avoid storing or asking for sensitive data
- Monitor online transactions
- Be alert of suspicious emails
- Phone Number verification
- Check the region and location of the customer
- Consult an expert on cybersecurity and IT
The fight against online fraud is a constant battle but always remember that protecting your valuable site or online information doesn't need to be too complicated. Many solutions exist in the market to tackle online fraud and cyber attacks. Consulting the right professionals or acquiring the right tools can offer you much-needed security.
Need consultation on online security? Need an eCommerce site built or improved?
Contact Fonseka Innovations for a consultation on tailor-built IT solutions for your business here.