9 Important Tips to Protect Your Small Business From Credit Card Fraud
Credit card processing for your small business is more or less a prominent option these days. Unfortunately, cyber criminals are aware of the increased use of credit card payments. Nielsen expects that by 2020, credit card fraud will be more than $ 31 billion in losses.
In short, credit card fraud is a very real threat to your bank account and reputation. Fortunately, you can avoid credit card fraud by harming your small business by following these nine tips.
A: Use an address verification system.
An address verification system (AVS) is a tool that is used by banks and credit card companies. AVS are able to compare the numeric part of a customer’s address with the information in the file. The issuing bank can then verify when a merchant makes an authorization request.
For example, if the name and address of the cardholder is Mr. John Smith, 123 Main Street, Realtown, USA 09876, the system will verify 123 and 09876. Once this information is submitted, the merchant will receive one of six Codes: Partial party address, partial match postal code, no match, international and unavailable. Receiving a full game for AVS ensures that there is less risk in processing this payment.
However, do not rely solely on AVS. There could be cases, such as when a client moved and has not updated his address yet. In addition, AVS is only available in banks and not in payment software or gateways
B: Upgrade to chip readers.
Counterfeit cards are one of the most common types of fraud in brick and mortar stores in the United States. There is a good explanation: we are behind in the implementation of EMV.
If you have not already done so, it’s time to upgrade to chip readers. An EMV is more resistant to theft than passing magnetic stripes on credit cards. In addition, merchants who use chip readers are not responsible if there is a credit card fraud.
C: Keep an eye out for unusual client behavior
If you accept credit cards in person, pay special attention to the card holder for warning signs that include:
Taking out credit card from your pocket, rather than a wallet or purse
Purchasing a large number of expensive items
Buy an unusual variety of items, such as clothing in various sizes
He rushes to complete a checkout at closing time
Telling you not to insert or swipr his card because it does not work
They give you their phone when they say they are talking to your bank
A customer who does any of these actions is not automatically guilty of credit card fraud, but these are some of the tricks that scammers use.
Trust your guts when a client looks suspicious.
D: Process online payments securely and safely
What if you process payments online or by telephone when you do not handle the credit card? You can process payments online safely and securely.
Review the following before processing a payment:
Orders that have several of the same items – especially when it would not make sense to buy multiples. I mean how many iPhone chargers does a customer really need?
Orders consisting of “big ticket” items, such as televisions.
Multiple same day purchases.
Several purchases from the same IP address.
“Rush” or “overnight” orders.
Orders that have failed AVS (address verification service) or CID (the three-digit value on the back of the card).
International orders from countries where you normally you do not have customers.
Orders that are sent to a unique address, but are made on multiple cards or that use multiple billing addresses.
Since 45 percent of all credit card fraud involves non-present card transactions, make this a top priority for your small business.
E: Secure access to the network.
Protect your network using encryption by limiting employee access to confidential data by using the latest version updates of any software your business is running and using separate devices for your personal and business use, as this may decrease the
Threat of cyber attacks such as phishing.
Also, remember to use anti-malware software.
“Cyber criminals use all kinds of malware, including Trojans, Man-in-the-Middle, Man-in-the-Brose and keyloggers, to get what they want, including personal data and payment details,” said co-founder of Due , Chalmers Brown.
“Continue to update your tools to detect malware that may be present.”
It may also be necessary to spend your time understanding how malware is used in terms of patterns used by cyber criminals. .
Focus on using malware detection solutions that can work in the background also use Open layered security measures such as generating complex, strong passwords that contain numbers, uppercase and lowercase letters, and special characters, as well as two-factor authentication.
F: Use tokenization
In simple terms, tokenization replaces numbers with a token. This is a mathematical representation of a number.
If you accept payments through Apple Pay or Samsung Pay, you are already using Tokenization. These services do not actually transmit the customer’s actual credit card number.
G: Report fraud immediately
No matter how prepared you are and the security measures you have taken, you can not completely avoid credit card fraud. If you suspect that a fraud case has occurred, then you must act immediately. Call the authorization center of the card issuer quickly. You say you have a “code 10 authorization request.” Hold on the card itself, if possible.
If the card is not present, and you suspect fraud, do not hesitate to call your credit card processor, bank, and even local authorities.
H: Follow PCI security standards
These are the security standards set by the Payment Card Industry. Standards are designed to guide small businesses. They instruct how to securely accept, transmit and store cardholder data. Being compatible is one of the most effective ways to thwart credit card fraud.
Becoming compatible with PCI is your responsibility. Fortunately, you can read all about these PCI security standards online. Review this and implement the security measures and always test your framework.
I: Keep on educating yourself in credit card fraud
Always remember that credit card fraud is constantly evolving. Cybercriminals are diabolical and will use the latest technology to commit acts of credit card fraud. In other words, the above tips may not be relevant in the future.
Make sure that you frequently keep yourself updated and informed about the latest credit card fraud tactics. Keep up with the best ways to protect both your business and your customers.
Also, do not neglect other types of fraud targeting small businesses. These include:
Billing fraud or invoice fraud in which you are cheated to pay a false invoice for advertising, renewal of domain names, office supplies or directory listings.
Excessive payment scams in which a “customer” pays excess for an item and then requests a “refund.” Malware in which you accidentally install software on your device that gives scammers access to files or track your activities.
Ransomware is malicious software that will block access until you make a payment.
Whaling or spear phishing are when criminals attempt to obtain confidential information.
Scammers pose as a boss, client, or other authority figure and then demand an employee to transfer money to a bank account.
Some unhappy or disruptive employees will use credit cards for their own personal use or leak-sensitive information.
Government imposters where criminals claim to be a government agency, such as the IRS, demanding immediate payment.
I hope that above article will be use full in the guidance to protect you from credit card frauds
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