Businesses mustn't ship to virtual addresses like PO boxes, as most fraudsters use it.
This piece highlights types of ecommerce frauds and steps businesses could take to prevent them. Most ecommerce frauds include inconsistent order data (zip code) larger than average order value, purchases from multiple cards, different cities, declined transactions and more.
To protect online stores against fraudulent purchases, conduct regular site audits, check if SSL certificates are working, encrypt communications and more. Brands must ensure the store is Payment Card Industry (PCI) compliant and uses Address Verification Service to spot suspicious credit card activities.
Have consumers confirm card verification value numbers (CVV) and use Hypertext Transfer Protocol Secure (HTTPS) to secure data between browsers and online stores. Set a limit on number of products customers can purchase and check whether IP addresses and credit card numbers match.
[10 minute read]