On November 11, a record-breaking Singles’ Day took place yet again, with online retailers like Alibaba exceeding over $25 billion in sales and averaging 250,000 payment transactions per second. Aside from Alibaba, other online retailers will also expect to see a surge in online traffic and sales between November and January. Unfortunately, online hackers and fraudsters will prepare to exploit the holidays, causing an increase in e-commerce fraud for merchants.
Most existing fraud-detection systems are simply not built to withstand such a heavy demand surge. With the greater sales traffic, you will want to maximize the potential of sales without accidentally losing more.
What can merchants do?
Here are three tactics for online businesses to better protect themselves and their customers against eCommerce fraud:
1. Active surveillance
Traditional methods of screening for fraud commonly rely heavily on rules and 24-hour manual monitoring. However, such methods are static and reactive. When online hackers are able to bypass the system, traditional solutions simply layer more rules and authentication barriers for tighter security. However, this is at the expense of user experience, and damages sales.
Instead, businesses should move towards active surveillance. With non-intrusive behavior monitoring and real-time analysis, merchants can block out fraudsters while passing genuine users. Rather than building a wall of static defense, active surveillance captures more real-time data to understand if a user is malicious or genuine.
2. Unlock the benefits of full automation
The beauty of fully automated fraud solutions lies in enabling businesses to scale aggressively, especially at the most crucial moments. This is in direct contrast to reliance on manual monitoring, which results in limited scalability, bottlenecks in processing orders, and poor customer experience. Furthermore, it is very costly to scale and train the manual review team just for holiday sales periods to meet the influx of traffic.
To keep up, businesses should switch to real-time processing and full automation. This will arm them with the necessary protection whenever, wherever. The immense growth of e-commerce year-on-year comes with record-breaking holiday sales. Consequently, businesses must sufficient prepare to capitalize on the growth potential.
3. Protecting different points of entry
Account takeovers have become a growing problem; fraudsters can easily buy and sell user data off the black market. Therefore, we can no longer assume that existing accounts are always accessed by the same user. This is exacerbated by the fact that more companies are starting to build an online ecosystem with more services in one single platform (e.g. Alibaba, Amazon). As a result, one compromised account allows the fraudster to access multiple services with one login.
Businesses should focus on securing payments that come through. At the same time, they must also prevent accounts from becoming additional vulnerable points of exploitation.
Guard against e-commerce fraud
Following these rules will allow you to grow your sales aggressively instead of inching slowly in the shadows cast by fraudsters.