A Warning To Retailers of the Fraud Threats Surrounding Black Friday & Cyber Monday
Black Friday 2015 in the UK is predicted be the biggest yet, topping £1 billion. As retailers prepare themselves for the increase in sales over Black Friday and Cyber Monday, they also need to be aware of the increased threats that will present themselves. Global Risk Technologies™ was featured in Security News Desk to raise awareness of these threats.
As discussed in the article, in recent years there has been an increase in online purchases on Black Friday. This, coupled with the fact that the majority of retailers now operate an omni-channel approach, with a large portion of their sales generated through online, one of the biggest downsides to Black Friday will be chargebacks.
Chargebacks were originally established as a form of consumer protect against unsavoury merchants and criminals, but now the process is being exploited by common consumers. Fraudsters use chargebacks as a way to obtain a refund on a purchase they made online. They do not intend on returning the product, but keeping it and getting their money back. This is called friendly fraud.
With the increased transaction volumes over Black Friday and Cyber Monday, friendly fraud is expected to soar. Monica Eaton-Cardone, the chief information officer of Global Risk Technologies™, offers some sound advice on the steps merchants can take to eliminate fraud and chargebacks this Black Friday.
- Require a Card Security Code: For all credit card orders, be sure to obtain a valid card verification code (CVC). Not only does this help prevent cybercriminals from placing fraudulent orders with stolen card data, but it can serve as valuable evidence in a chargeback dispute.
- Collect and Compare IP Addresses to Physical Addresses: By capturing a customer’s IP details, merchants can identify the physical location associated with an IP address and confirm if it matches the billing and/or shipping address. This information can be used to flag suspicious orders as well as help prove the legitimacy of a disputed transaction.
- Use Both Automated and Manual Analysis: Manually approving all transactions can be costly and time consuming; however, automated systems may decline legitimate orders or miss potential fraud. For optimal results, choose a risk management solution/partner that combines both advanced technology and human expertise.
Read the article in full here