Benefits of Fraud Prevention Systems
Online payment fraud is a common problem all businesses have to deal with,
so in this article, we are talking about payment fraud management and the benefits of fraud
prevention systems.
Every business owner has dealt with online payment fraud at least once in their life, and this problem indeed is quite important since not only does it lead to financial losses, but also endangers your merchants. As a matter of fact, in the worst-case scenario, multiple payment fraud cases can lead to the complete closure of your merchants and, therefore, the inability to accept payments online. So, let’s talk about payment fraud detection and discuss the benefits of having an online payment fraud prevention system like Germius.
What Is Payment Fraud?
Payment fraud is any type of unlawful transaction orchestrated by cyber fraudsters where a victim is deprived of their funds or sensitive payment info. Though there are many types of online payment fraud, for you, as for a business owner, the most dangerous ones are fraudulent chargeback requests, payment data leakages, and pagejacking. So, as you might have already guessed, payment fraud is something you want to avoid at all costs since cybercriminals can steal your and your customers’ money as well as severely damage your merchants and your business’s reputation.
Types of Payment Fraud
As we have already mentioned above, there are many types of online payment fraud, including phishing, authorized push payment fraud, identity theft, and more. But here, we will take a look only at those types that are relevant for online businesses, so without any further ado, here they go:
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Fraudulent chargeback requests.
False requests for refunds are more common than most people think, and to their surprise, money loss is not the main problem here. In fact, too many chargeback requests usually lead to serious issues with merchants, so it’s best to prevent them by using chargeback prevention tools like Germius. -
Pagejacking.
It’s almost like an identity theft, only here fraudsters copy a legitimate website and use it to make users believe they are purchasing services or goods from that store and, therefore, make them give away their payment info. Then, cybercriminals charge the victims’ cards and disappear. Business owners must take all the necessary security precautions and make sure the illegal clones of their sites are deactivated in time. -
Payment data breaches.
Data leakage is not an online payment fraud itself, but since it usually leads to one, business owners must take it into consideration. Basically, you have to improve your website’s security and protect your customers’ payment data.
Payment fraud is pretty common, and there are dozens of schemes fraudsters use to rip you and your customers off. Moreover, cybercriminals come up with new schemes every few months. So, how to prevent payment fraud? Let's talk about that in the next paragraph.
How to Prevent Payment Fraud?
It goes without saying that payment fraud prevention is important, but how do you protect your business from cybercriminals? Well, here are some tips:
- Use secure payments only
- Get a reliable online payment fraud detection system within your gateway or payment orchestration system like the one Germius offers
- If you have already been a victim of fraud, create and explore your payment fraud analytics to discover the aspects that need your attention most and the weak points of your payment gateway and website in general
- Detect and report illegal clones of your e-commerce website in time
- Educate your employees and customers so that they know how to detect and avoid fraud
- Limit the access to sensitive payment info of your clients
- Stay up-to-date with the latest security measures
These payment fraud prevention techniques are pretty simple, so make sure to follow them, and you and your dear customers will not have to deal with ecommerce payment fraud.
What Are Payment Fraud Prevention Systems?
Payment fraud management is impossible without special solutions and tools, but what do payment fraud detection companies do to protect you against cybercriminals and secure your transactions? Well, payment fraud solutions like Germius provide you with a full spectrum of services, including secure payments, chargeback prevention, and sophisticated fraud protection, that safeguard both you and your customers. These services have elaborate AI systems, as well as manual security settings, that help guard your payments, merchants, and reputation.
Benefits of Online Payment Fraud Detection
Obviously, having a payment fraud protection system guarantees security, but the word “security” is pretty vague, so let’s take a brief look at the benefits of online fraud detection solutions:
- Timely fraud detection and prevention. Modern payment fraud solutions quickly detect and prevent fraud before cybercriminals damage your merchants or steal your money.
- Increased customer trust. Customers prefer platforms that value their security, especially when it comes to payments, and online payment fraud detection software helps create such a trustworthy space.
- Real-time monitoring. Tools like Germis monitor potential threats in real time, which minimizes the chances of fraudsters scamming you.
- Automated systems. Most modern payment fraud solutions have automated systems, which make them affordable and rather cost-effective.
- Chargeback prevention. As we have mentioned above, chargebacks are a serious threat for your merchants, and payment fraud detection software helps to manage fraudulent chargeback requests.
Final Word
Payment fraud is not a joke, but luckily you can easily solve this problem by means of an online payment fraud detection solution like Germius. So, why don’t you secure your merchants, safeguard your business’s reputation, and protect your customers with reliable payment fraud prevention software?
