Ecommerce fraud prevention tools can help protect online retailers from losing money to fraudulent activity and chargebacks. In addition, they can also reduce operational costs and improve customer satisfaction.
Fraud isn’t a fun thing to deal with, but it’s critical for the success of your eCommerce business. Not only can it lead to losses of revenue and profit, but it can also put your company in card network operators’ black books.
Payments fraud is the most common form of ecommerce fraud and involves bad actors using stolen credit cards to purchase products or services online and then sell them at a discount. The biggest concern for businesses is that this type of fraud often occurs with card-not-present (CNP) transactions, meaning bad actors don’t have to present their card at the point of sale.
The Top 7 Ecommerce Fraud Prevention Tools for Online Merchants
A good ecommerce fraud detection solution can automate the review process and use risk scores to automatically approve or decline login, payments, and signups. This can speed up the checkout process and minimize the number of steps a legitimate user must complete in order to make a purchase.
Bot Detection
One of the most important features of ecommerce fraud protection solutions is the ability to block bots from interacting with your website or app. This is achieved through a bot identification system that relies on host-monitoring techniques to deploy triggers that detect suspicious interactions.
Machine Learning
The right ecommerce fraud prevention tool can help your team better analyze fraud patterns and make more informed decisions about how to respond. Some tools include machine learning capabilities that can recommend rules based on historical data.