Comment
Author: Admin | 2025-04-27
Fraudsters Never Quit. Here’s How Merchants Can Stop Them.Consumers are embracing innovations in payments technology, and their shift from in-person to online transactions has come with a sharpened focus on the security of their payments and personal data.From digital wallets and contactless payments to real-time payments and buy now, pay later services, consumers have ample new payment options to choose from. This technology also gives merchants unprecedented flexibility in managing their business operations and customer experience—and it presents new opportunities for fraudsters.Globally, merchant losses to online payment fraud are expected to reach $343 billion between 2023 and 2027,¹ and with the implementation of multifactor authentication requirements like strong customer authentication (SCA) in the European Union, fraud protection is top-of-mind. Shoppers notice what merchants are (and are not) doing to protect their information. This presents an opportunity for merchants. By securing their payments systems with a solid fraud protection strategy and communicating their commitment to protecting personal financial information, merchants can simultaneously keep customers’ data safe and delight them with a seamless payment experience.In this rapidly changing landscape, merchants hold the unique position of being able to protect consumers from fraud and, when done right, make fraud prevention a competitive advantage that helps differentiate them from the competition and generate revenue.4 core fraud prevention tools to use nowProven fraud protection tools continue to deliver high value. Using them effectively is key to a merchant’s success. Whether just starting a business or assessing a current fraud prevention strategy, these are the standards that all merchants should meet.1. Card verificationAn easy-to-implement first step, card verification confirms a shopper’s identity and the legitimacy of the purchase. Verification can be in the form of the three-digit verification number on the back of the card, requiring a signature or PIN, using an address verification service, or using a 3D Secure (3DS) like Discover® ProtectBuy®, which enables real-time validation of a consumer’s identity before processing a payment.2. TokenizationTokenization replaces a customer’s primary account number (PAN) with a unique replacement code called a token. That token is the only data stored on the merchant’s network—the card data itself is stored on a high-security server. Tokenization can be used for in-store and online payments.3. EMV chip cardsChip card technology (also called EMV) is the current standard for payments. EMV chip cards are more secure than magnetic stripe cards because they contain an integrated circuit chip that encodes every transaction differently. If a criminal tries to intercept data from a chip card transaction, that data cannot be used again to make another purchase.4. Fraud risk analyticsData analysis tools examine enormous amounts of data and identify deviations from normal behaviors and patterns. This might be data about past customer orders, website
Add Comment