Modern retail embraces and integrates interactive technology, otherwise known as e-commerce. As a result, it has simplified and made purchasing goods accessible to more consumers through technology and the internet. But do you know any tips on detecting modern retail fraud?
Adapting to modern retail practices also comes with the drawback of facing threats to consumer rights. Even in a virtual environment, fraud remains an enemy of every consumer, both businesses and individuals.
The best way to avoid being duped by fraudulent practices is to learn how to identify them beforehand. So we’d like to share tips on how to detect modern retail fraud to boost consumer awareness, confidence, and protection.
Be aware of phishing tactics
Phishing is a common fraudulent practice that criminals use for modern retail fraud. Unfortunately, even with most people using digital methods for commercial transactions, many are still unaware of phishing scams.
One should learn common phishing tactics to protect themselves from having their personal information stolen and used for purchasing goods online. Some of the common ones include creating a fake website that looks like an e-commerce website and sending an e-mail to an unsuspecting consumer under the guise of a legit business.
Phishing schemes are mostly elaborate and well-made, which is why you always have to verify the information you see on your screen. And just to be safe, never give your personal information easily online, especially your credit card number or social security number.
Complying with PCI rules
The Payment Card Industry Security Council (PCI) created rules to help businesses protect themselves on the internet and keep customers’ data safe, including data required for purchasing. This includes the advice of not storing CVV together with all other information from users of your site. That’s to protect them from hackers trying to steal money.
PCI compliance is mandatory for e-commerce retailers working with financial transactions. Some payment gateway providers guarantee PCI security on their side, so you can look for those to help you protect the most vulnerable part of your mechanism.
Delivery tracking helps increase customer satisfaction by assuring a transparent and effective communication process. Other than that, it’s also useful for preventing fraud. For example, it can prevent chargeback fraud, a common scam that exploits retailers.
Besides that, tracking your deliveries also minimizes the risk of sustaining financial losses due to human errors.
Protect your website
Encrypt your website to protect data coming from your customers’ browsers. This way, you’ll have a layer of protection covering your customers’ data to at least make it difficult for hackers to breach your website.
You can also use the open-source, host-based intrusion detection system, OSSEC, which helps in real-time fraud prevention.
For consumers, avoid shopping on unprotected websites. If you see that the website you visit doesn’t have the padlock symbol before its URL, it means it doesn’t have encryption to protect your data.
Store as fewer data as possible
This is a basic security principle that most modern retailers should apply. If you only store little data, you won’t suffer huge losses. There’ll be nothing for identity thieves to steal and use for their selfish gains.
As previously mentioned, you can have a payment gateway provider keep and handle all the sensitive information your customers give you, specifically card numbers. In addition, you must comply with PCI rules and follow strict storage guidelines should you choose only to have one recurring payment option.
Keep an eye out for any new fraudulent retail practices by reading articles on our newsfeed. We hope these tips on detecting modern retail fraud helped enlighten you.
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