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Ecommerce Blog - Fortune3

How To Prevent eCommerce Online Fraud


As internet retailers, one of the things we seriously have to take into consideration is how we’re going to protect our website from being attacked by hackers or fraud. Realistically, it is almost impossible to prevent fraud and that is one of the main problems online retailers are currently experience so we need to have some sort of “ecommerce security” in place in order to verify orders.

Are you receiving a lot of chargebacks? Are you shipping out orders that your tracking says they were delivered but now the buyer says they didn’t receive it?



There are some ways you can go about trying to prevent as much of this fraud as possible. Let’s list some ideas and some “must do-s” for you to implement:

1) CALL VERIFICATION: Call all your orders to make sure they placed an order on your website. This will not only give you peace of mind but will also ensure customers you are verifying orders to protect other customers from identity theft in case it wasn’t them that placed the order.

2) BILL-TO AND SHIP-TO: Order looks a little shady? Call the customer and let them know you only feel comftrable shipping to the bill to as that is an important factor when credit cards review chargebacks.

3) CVV2/AVS MATCH: Make sure you can get some sort of code verification from your credit card processor that lets you know if the CVV2 (3 digits on back of credit card) and AVS (address bill-to verification). If they both match, most likely the order is OK to ship out.

4) IDENTIFICATION REQUEST: Still not sure about shipping out a certain order? If the amount is substantial (or may not) you can always ask the customer to send identity verification such as a drivers license to match the credit card they used or simply a copy of the credit card.

5) REQUIRE SIGNATURE ON SHIPPING: If you decide to ship an order you aren’t too sure about, send it out with signature verification if your carrier already doesn’t offer that service free for you. Credit card companies will require to see a signature as proof the customer received item.

6) OFFER DIFFERENT PAYMENT METHODS: Credit cards may not always be the best form of payment for orders which you aren’t too sure about. You can always request that certain orders, once placed, be cancelled and only accept money orders, western union payments and other form of payments that will guarantee you payment without any chargebacks!

Posted in Ecommerce Essentials & Tips