Business2Community reported last week on some of the best ways to cope with busy retail periods and reduce the chances of people making a fraudulent purchase online. With the holiday season upon us, retailers are expecting a surge in online shopping traffic, so preparing for the associated risks is essential.
Online retailers must take practical steps now to protect themselves and their customers. Brushing up on the basics of fraud can be a good place to start, especially with fraudsters becoming better organised and more sophisticated online.
Retailers should be on the lookout for some common types of fraud, for example fraudsters who test batches of stolen credit cards to see if any of them work online. Fraudsters may also purchase digital gift cards that can be loaded with money and later used as a form of payment.
Knowing the level of fraud risk for your organisation is essential in tailoring the right solution. If fraud is high during normal shopping periods, this will only increase when the festive retail boom hits. Implementing added security checks can reduce fraud dramatically, however it is also important to consider how this may affect customer experience. Some shoppers may become annoyed at having to repeatedly prove their identity and personal details, leading to an increase in basket abandonment.
Shopping habits will naturally change during holiday times, enabling fraudsters to go under the radar more easily. Last year the UK saw 11.4 million fraudulent transactions occur throughout the festive season, which are likely to have been disguised by online retailers not manually investigating the orders that happened during high traffic periods.
Finally, putting customers first is a massive help in reducing fraud levels. With chargebacks likely to increase during the festive season, it is essential that retailers are sure on the facts before identifying a purchase as fraudulent. Clear communication channels and strong customer service advisors on hand 24/7 mean customers will be more likely to approach a merchant for a refund rather than a chargeback through their bank. This will overcome revenue losses and increase customer satisfaction, especially if they feel merchants are always willing to help in the season of goodwill.
