How Magento Fights Back Ecommerce Fraud and Helps to Save Money?
Ecommerce fraud has grown incredibly in the past few years, increasing the threats to both merchants and customers. Charge backs and frauds have become a common issue for any online store and today, it has reached to an average of 8% of the revenue, up from 7.6 % a year ago. Any frequent and large data breach often leaves the fraudsters with huge information about the site that they need to fuel their crimes.
If you want to avoid the annoying charge back problem, then it is imperative to use some fraud detection plugin to protect your ecommerce business from all sorts of ID thefts, credit card frauds and eliminate the risk of losing your revenues. Having a fraud protection tool at your site often increases the safety for your economic stability.
Magento development is a popular ecommerce platform that is used widely all over the globe for building online stores. Due to the fear of fraud, ecommerce merchants often hold back legitimate orders. and the false declines result in loss of business opportunities. And once you lose the customer, there is only a little chance that they will come back.
Magento: A better way:
Fortunately for Magento customers, there is always a better means to handle frauds. The fraud protection system can be easily integrated in the ecommerce platform and it offers instant solution to the growing problem. With the fraud protection tool, the retailer can now easily evaluate thousands of orders in simply few seconds and then quickly sort the orders that are safe from fraudulent and the possible fraudulent orders. This means that fewer orders are held up and less reviews by humans are required.
The protection system also offers 100% financial guarantee on all the approved orders and this enables the merchants ship more orders without having to worry about whether the orders are fraud or not. Some other fraud prevention tools that can be used by Magento are Fraud detection by Konduto, Fraud and Chargeback detection by Signifyd, Customizable fraud filters by Bijuthaj, Fraud check (MaxMind) and etc.
Some Magento fraud prevention features:
By making certain adjustments to your backend in order, you can easily secure yourself. It is important to understand that a good payment processor should always have a fraud prevention protocol. But since this is not the case always, it is crucial to know the type of options that you have before you.
- 1- Geolocation tracking: This allows the merchants to easily track the customer’s IP addresses and then verify them with the payment information provided together with the shipping details.
- 2- Transaction velocity: This describes the number of transactions any user or any specific device is making within the given time frame. It is assumed that fraud or stolen credit card details will be used many times within a short period of time, before the card is reported as stolen or even the account is frozen.
- 3- Blacklisting: This is a feature that assists you to cross reference potential fraud accounts/ purchases with an industry database to generate better and faster results.
- 4- Social graph: This helps you to cross reference any order info with real people through social media that includes Facebook, Twitter, LinkedIn and etc. This helps the merchants to take better decisions and also identify fraud users effectively.
“Magento fraud prevention tools offer many other features that help it to be really effective, but it has to incorporate at least 3 of the above mentioned features. These extensions are very useful for small merchants, who have to carry out safe transactions to keep their business running without putting a hold on it.”