Online retailers lose billions of dollars to credit card fraud every year. For merchants, fraud is a source of countless headaches – an unavoidable industry curse that tests the security, strength and success of small and large businesses alike everywhere, everyday. Unfortunately, even with the emergence of fraud-combating software, analysts predict annual fraud-associated losses will continue to rise as more consumers switch to shopping online.
With the 2015 holiday season just around the corner, merchants are about to see a huge spike in cybercrime. The holiday season, a festive time that promises great joy for millions around the world, is also a season of increased greed, need and desperation. In the last two months of the year, when shoppers will spend hundreds of billions of dollars, online fraud will peak to its highest.
For physical brick-and-mortar stores, a curb in fraud is to be expected as the U.S. moves toward cards with microchips, which provides increased security for in-store shopping. Although this is great news for physical store owners, microchips offer zero protection against online fraud.
For merchants keen on spotting fraud first-hand, analyzing and recognizing factors such as selected shipping country, high value orders/quantity, invalid addresses, and suspicious emails are essential to preventing fraudulent transactions. But humans are just that, human – when relying exclusively on a pair of human eyes to detect fraud, mistakes are bound to happen.
Fortunately, as cybercrime has increased through the years, so has the number of companies offering protection against fraud. Such companies and their software, while not 100% fail-proof, provide a great level of security and comfort in an industry that is plagued with scammers. Volance, Trustev, and ThreatMetrix are among a few of the countless companies that have emerged over the years to combat fraud.
FraudWatch, a fraud detecting program offered by 3dcart, helps merchants identify fraud before an order is ever processed using an algorithm that assesses threat levels. With FraudWatch, merchants can:
- Identify potential fraud before you process orders
- Minimize risk and loss by assessing the threat level of transactions
- Configure screening rules to automatically approve, deny or set aside transactions for further review
- Display positive or negative fraud history based on reported information
- Report suspicious transactions to warn other 3dcart vendors with the Community Alert feature
If you’re looking to protect your business against fraud this upcoming holiday season, check out FraudWatch, currently available for a 15 day FREE trial. Simply log in to your Online Store Manager and select any FraudWatch plan; the trial will automatically be applied. To enable FraudWatch on your store, follow these steps.
To learn more about FraudWatch, visit our app store here.