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Digital payments fraud 2021

Time to read: 3 minute(s)

Our world is very hard to imagine without digital payments. They are fast, convenient and seemingly have no drawbacks. Perhaps this would be the case if it were not for online payment fraud.
Meanwhile, the further the progress in online payments goes, the higher the probability to become a victim of fraudsters, because these unscrupulous people also don’t stand still and try to invent new ways to steal your data and money.
In this article, we will take a look at how to prevent fraud with online payments. First, though, we need to get an understanding online payments fraud with you.

Scammers don’t just hit a company’s profits

Of course, the main objective of any fraudster is to gain access to the money of the company and its users. However, without even thinking about it, scammers strike a blow to a company’s reputation and consumers’ trust in it.
One way to protect yourself from such unpleasant consequences is to choose the right partner who can quickly suspect fraudulent deals and prevent them.

Types of fraudulent transactions

In order to fight fraud effectively, it’s important to first understand what you’re up against. So right now, we’re going to take a look at the most popular types of online payment scams.

Identity Theft and Phishing

In order to steal identity, scammers create a website that appears very similar to the official brand. This is done in order to confuse customers. When they start logging into the site, all the data they provide will be in the possession of the attacker.
To protect yourself from this type of fraud, it is necessary to specify additional data that only you know. They allow the system to distinguish the real user from the intruder.

Fraud via good returns

A traditional scheme in which the scammer buys a product, and after he receives it, he initiates a chargeback. As a rule, such attackers act on certain patterns and it is very important that the system knows how to identify them. In addition, you can use special blocking lists, sending there those users who too often initiate chargebacks for one reason or another.

It is important not to overdo it in the fight against online fraud

An understandable desire of every business owner who encounters online fraud is to tighten their risk controls. A problem immediately arises here, because when you block fraudulent transactions, you risk blocking real and honest customers who will have to wait a long time, may never wait and go to your competitors. But what’s worse, these customers will know that your company is working very slowly and they will not only not buy from you, but they won’t recommend you to their friends. So, in the pursuit of safety, don’t forget the conversion rate.
One of the most effective modern ways to combat online fraud is 3D Secure. In this case, another step is added to the purchase process. The system directs the buyer to a page with a security code. By connecting this system, the buyer shifts responsibility for possible fraudulent actions to the company that issued the card.
Once again, there is a problem: When processing any transaction, the buyer would be forced to provide a password. Dynamic 3D Secure solves this problem. By enabling this feature, you ensure that transactions are tracked in real-time and sent to 3D Secure only if they meet certain criteria. In addition, 3D Secure allows you to customize your anti-fraud strategy based on the most important factors such as your country of operation, your business model, the industry you represent and much more.

The bottom line

After covid-19 came to our world, online fraud began to develop at a frantic pace. This is not surprising, since almost all customers have switched to online shopping. Of course, all companies try to do everything possible to maximize the protection of users from fraudsters. However, this in no way diminishes the responsibility of the buyers themselves, who must be aware of the latest trends in online fraud. We recommend that you ensure maximum payment security for your customers and a wide range of payment methods. How to do it? Just contact PayDo.

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