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Beating Christmas Crooks
Listed under: Interviews
Published: Wednesday, November 05, 2008
Have you protected your business from fraud this year? Expert Dr Akif Khan gives us the lowdown
Why is there an increase in fraud during the festive season?
Christmas is like a roller coaster for many retailers: exciting and terrifying in equal measure. The sheer volume of orders alone can prove a massive challenge, especially for online traders who have to scale rapidly in order to avoid disappointing their waiting customers. In the rush to meet demand it is easy to overlook some other key issues. This is particularly true when it comes to managing fraud. This Christmas 77% of shoppers plan to complete at least half their gift shopping online, according to e-retail experts IMRG. People's shopping patterns will generally be significantly different to the rest of the year and if retailers are relying on the same rules they have used to identify potentially fraudulent transactions in the past, they may find themselves swamped with orders to review. This could be particularly taxing for businesses who rely wholly on manual reviews of orders. While it might seem like the right approach for your normal order volumes, what happens when sales treble over Christmas?
How can retailers tackle this?
Automating fraud screening is vastly more efficient when volume increases. Christmas is the biggest test for your anti-fraud measures, so now is the time to make sure they are working properly. Simple things can make a huge difference. For example, retailers need to ensure their fraud screening systems are fed the correct data, making sure all the fields are mapped out correctly on their order forms. Christmas is an opportunity to enhance your website rules and take the opportunity to learn from them. With the number of UK online shoppers increasing each year, it's vital to remember there are also more people buying from around the world. Opening yourself up to international trade can be a great source of new business, but it isn't without its risks. Build on an IP geolocation system by investing in a device fingerprinting tool; this will provide you with even more information about the computer used to place an order, helping you to make certain that the shopper is who they say they are.
Are there any other tips for safeguarding against fraud this Christmas?
Be sure that your products make it to the right destination and stay vigilant throughout the shopping process. If you allow customers to change the shipping details once an order has been placed, you could be increasing your risk of a fraudulent transaction. Remember, people might use the correct details when placing an order, get past your defenses, and then re-route the goods to another drop-off address by phoning your call centre and changing the order details. To avoid this make sure you centralise your systems and have insight into both your online and call centre orders. In spite of the hard work, Christmas should be a happy time for retailers. Follow some of these basic precautions to help make sure that your company has a very happy new year.
Dr Akif Khan is head of client and technical services at CyberSource, a worldwide provider of secure online payment solutions.
Christmas is like a roller coaster for many retailers: exciting and terrifying in equal measure. The sheer volume of orders alone can prove a massive challenge, especially for online traders who have to scale rapidly in order to avoid disappointing their waiting customers. In the rush to meet demand it is easy to overlook some other key issues. This is particularly true when it comes to managing fraud. This Christmas 77% of shoppers plan to complete at least half their gift shopping online, according to e-retail experts IMRG. People's shopping patterns will generally be significantly different to the rest of the year and if retailers are relying on the same rules they have used to identify potentially fraudulent transactions in the past, they may find themselves swamped with orders to review. This could be particularly taxing for businesses who rely wholly on manual reviews of orders. While it might seem like the right approach for your normal order volumes, what happens when sales treble over Christmas?
How can retailers tackle this?
Automating fraud screening is vastly more efficient when volume increases. Christmas is the biggest test for your anti-fraud measures, so now is the time to make sure they are working properly. Simple things can make a huge difference. For example, retailers need to ensure their fraud screening systems are fed the correct data, making sure all the fields are mapped out correctly on their order forms. Christmas is an opportunity to enhance your website rules and take the opportunity to learn from them. With the number of UK online shoppers increasing each year, it's vital to remember there are also more people buying from around the world. Opening yourself up to international trade can be a great source of new business, but it isn't without its risks. Build on an IP geolocation system by investing in a device fingerprinting tool; this will provide you with even more information about the computer used to place an order, helping you to make certain that the shopper is who they say they are.
Are there any other tips for safeguarding against fraud this Christmas?
Be sure that your products make it to the right destination and stay vigilant throughout the shopping process. If you allow customers to change the shipping details once an order has been placed, you could be increasing your risk of a fraudulent transaction. Remember, people might use the correct details when placing an order, get past your defenses, and then re-route the goods to another drop-off address by phoning your call centre and changing the order details. To avoid this make sure you centralise your systems and have insight into both your online and call centre orders. In spite of the hard work, Christmas should be a happy time for retailers. Follow some of these basic precautions to help make sure that your company has a very happy new year.
Dr Akif Khan is head of client and technical services at CyberSource, a worldwide provider of secure online payment solutions.
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