Fraudsters are very dynamic, sometimes outsmarting your fraud prevention system. Once they identify a vulnerability, your business is exposed and the resulting financial damage can come quickly.
Word of a weakness in an anti-fraud system spreads quickly, often with multiple fraudsters attacking the same business, taking everything they can before security can fix the bug. Then they move on, looking for the next vulnerable online business.
When fraudsters assess the security of an e-commerce download free usa email database in preparation for a cyberattack, they can:
- Test the waters. A fraudster can test the viability of a credit card number by making a single, small purchase. If it passes, they know they have a valid card, paving the way for more (and larger) fraudulent transactions in the future.
- Place low-cost orders. If test transactions show the fraudster that they cannot purchase items worth more than $50.00, they can instead purchase 5 items worth $10.00 each.
- Circumvent anti-fraud rules. If your business sells computers, you can set up an anti-fraud filter rule that flags computer transactions over $2,000. A cybercriminal's first transaction, for a $2,100 computer, fails. But his second order, for a $999 computer, is approved. Just like that, the fraudster has identified your vulnerability to fraud, and several fraudulent transactions follow.
- Modifying orders after confirmation. After placing an order with the real credit card holder's information, fraudsters call customer service and change the shipping address. Since most companies do not re-evaluate approved orders, the fraudulent purchase is made.
Protecting Your Business from Fraud Attacks
To be successful, fraudsters try to avoid the potential radar of an anti-fraud team. If they can’t, they move on to find an easier target. Use these preventative measures to put fraudsters on the spot and let them know you’re watching.
- Don’t rely solely on rules-based filters to protect your business. What works today may fail tomorrow, and fraudsters have methods for identifying anti-fraud rules. Instead, take a multi-faceted approach that combines cutting-edge technology, statistical intelligence, and sophisticated human analysis.
- Incorporate a strategy that includes chargeback insurance, which is a 100% chargeback guarantee on what the merchant will not receive.
- Stay up to date on the latest fraud techniques, fraud management estimates, and data breaches.
- Analyze all transactions, not just those flagged by fraud filters. This allows you to identify fraud trends and behavior across groups of virtual orders.
- Ensure your security system remains up to date. You can't protect your business with outdated technology.
Again, fraudsters are creative. To prevent fraud attacks, your team must be too. The people planning these attacks will find the path of least resistance if your fraud protection is working properly.