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Your fraud prevention guide for online transactions

eCommerce offers an excellent opportunity for customers to order online at a time and place that suits them best, but also carries a significant risk of online fraud. When processing any kind of transaction online, you should always be aware of the potential fraud risks and know what to do to prevent them.

In this guide, we’ll have a closer look at the tools available to you designed to help reduce the danger of fraud that your business may be exposed to.

The basics of online payment fraud

Fraud prevention for online transactions starts with the Card Not Present (CNP) transactions. Any transaction where the card owner is not physically present is considered a CNP transaction. This includes phone payments, online payments and even mail orders.

At the height of the pandemic, online transactions in the UK rose by 48% to £113 billion. CNP fraud followed suit accounting for a loss of £452.6 million in 2020 alone. Boosted by the growth of online payments, cybercriminals are finding new ways of taking advantage of customer details.

For online payments, cybercriminals only need the card details, which can be stored digitally. This makes frauds much easier to get away with since it’s not easy for the seller to verify who is really paying. The only way to avoid the cost of genuine fraud charges is to stop the purchase from being made in the first place.

For chargebacks, online traders are liable for the transaction if they decide to accept chargebacks that may arrive several months after the transaction date, leading to a severe loss of revenue.

The fraud prevention tools you should be aware of

When it comes to processing transactions, it’s essential to have good knowledge of the tools designed to ensure that you and your customers are as protected as possible. It’s also important to use the right partner that will be a force multiplier for your business in terms of fraud prevention.

The fraud prevention tools that are available with our Trust Payments security protection solution, TRU Security, are:

Advanced risk, fraud and AML detection

Our Fraud check service uses behavioural authentication to detect fraud and cyber attacks. It will protect your online business from malware and bots, as well as account takeovers.

It will help your business reduce false positives, which happen when a payment system thinks a transaction is fraudulent, when in fact it is not, thus creating friction for your online customers.

It will also help you reduce friendly fraud, which happens when a customer contacts their card issuer to dispute a charge and incurs a chargeback.

Advanced authentication with EMV 3DS (3DS2)

This is an enhanced method of confirming the identity of eCommerce customers. It allows businesses and their payment providers to exchange data elements on each transaction with the cardholder’s bank. This data can be payment-specific, for example the shipping address, as well as contextual, such as the customer’s device ID or transaction history.

Authentication methods can include fingerprint authentication, voice or face recognition and behavioural biometrics. This ensures a more streamlined customer experience and increased potential to support fraud prevention.

Advanced behavioural biometrics

Our fraud solutions can install software on your website which will add behavioural biometrics to learn visitors’ behaviour, improve scoring and help detect social engineering attacks.

Key benefits of using fraud prevention tools

Using fraud prevention tools will help your business avoid making fraudulent transactions through your accounts. Use these tools to monitor your transactions and ensure they are secure and only processed if they meet the criteria you have set for your business.

There are a number of benefits to using TRU Security’s fraud prevention tools for your business:

Benefit from real-time actionable insights from our AI and Machine Learning tool.

It’s easy to prevent and reduce chargeback risk in your business.

You are fully compliant with the latest regulations applicable to EU and UK payments.

Your payments benefit from Strong Customer Authentication (SCA). This allows your businesses to use at least two authentication elements to verify electronic payments. Our solutions enable quick and effortless SCA with the use of activation codes.

As fraud attacks evolve, so do the techniques and technology required to defeat them. Therefore, choosing your fraud protection solution should not be taken lightly. Integrations with the wrong provider may cost you additional fees and provide reputational harm to your business if things go wrong for your customers.

Security statement

Security is our top priority at Trust Payments and we strive to ensure that all data is kept secure at all times We keep all customer data safe with AES256 encryption, SSL Certificates, and a minimum of TLS1.2, between your website and our datacentres.

Our systems are scanned quarterly using the Qualys PCI Platform, an independent Qualified Security Assessor (QSA) and approved vendors – Omnicybersecurity (UK) & Forgenix (US) – to ensure compliance with the security requirements of the card schemes.

We follow a number of rigorous security procedures on a daily basis including, but not limited to, continuous monitoring of our perimeter, dark web monitoring, and internal checks to ensure that CIA triad is maintained at all times.

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