Studies and data have stated that by the end of 2024, around 94% of purchases will be made online. However, e-commerce businesses are highly prone to leading fraudulent activities. For this reason, it is necessary to implement protection. If a company doesn't take steps to prevent e-commerce fraud, it risks its revenue, ultimately damaging its reputation.
Hence e-commerce businesses are strongly advised to implement strong fraud prevention methods to secure their customers and themselves too. A renowned e-commerce business is known for its reliable and expandable shopping experiences while keeping fraud a check.
Data services for fraud alert and prevention
With the help of data services e-commerce can detect and prevent fraud activities that occur during their transactions. The data services include:
● Verification software:
A fraudulent activity is assured whenever a customer's billing, shipping, or card details do not match correctly. Fraud detection software analyses patterns in the transaction data of a customer to make sure there is no fraudulent activity occurring. A few common fraudulent activities include a high transaction amount or a peak rise in transactions from a particular demographic and geographic region.
● Machine learning algorithms:
Implementing machine learning tools is a great way to detect any fraud. This is because machine learning algorithms analyse large volumes of transaction data based on trends, identify patterns check out for abnormalities in customer behaviour and detect fraud in no real time.
● Identity verification services:
Using these services, an e-commerce business can readily verify a customer's identity by cross-checking their information with external databases like reports and government ID proofs. This way, they search for identity theft or fraud.
● Transaction monitoring tools:
Using these tools you can monitor transaction data and check out for any fraudulent activity like repeated transactions from the same account in a limited time frame and transactions that do not resemble a customer's typical purchasing behaviour.
● Implementing authentication techniques:
Businesses must implement step-up authentication techniques that ask customers for a few additional verification measures. A few common examples include a two-step authentication in case of a riskier transaction.
● Protecting transactions:
It is always best to collaborate with AI-powered platforms that prevent any sort of threats before they hamper your business. This way, your business can engage more customers with a lifetime value
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