The advancement of financial activities to the online platforms and digital processing has proven very beneficial, but it also has its snag. Fraudsters have posed a significant threat to the financial services offered online. Fraud has led to constant losses in financial institutions and often go unnoticed. Nearly half of SMEs have fallen prey to scammers and fraudsters. Below are tips to follow that will help keep these fraudsters away.

Know the scope of fraud

Fraud, like any other art, is diverse in many ways. Before you set to prevent something, you ought to have a clear understanding of that thing. From the simple bits of information posted by the company to the sensitive data stored by the company, fraudsters often find a way to manipulate the data and get away with it. Technology has made fraud more comfortable than ever by the use of advanced malware and cracking accounts.

Be aware of communication flow and transactions

Communication is key to any business success. Without communication, very little or no business transaction would take place. From mails, online forms, messages, and phone calls, fraudsters have a sea of ways to trick their victims. Therefore, keeping a keen eye on this communications or assigning a designated employee on that task would make it harder for the fraudster to spoof or fake clients or business financial data. For an online business below are some of the commonly targeted features by attackers:

  • Reshipping fraud; this is a process whereby a person uses stolen credit card details for online purchases from a foreign country and gets a person to ship the products to the final state of residence.
  • Card testing; most of the online clients use credit cards to make purchases, which leaves these details vulnerable to attackers who often make small purchases to confirm the validity of the stolen card details.
  • Referral abuse; most of the online markets offer referrals to assure and reward customer loyalty. Frauds create fake user accounts to exploit this feature, which leads to losses on the business side.
  • Electronic gift card fraud;  Frauds use card details collected from the platforms to buy gift cards, which they quickly outflow.

Savvy your risk tolerance

Being magnanimous on customer’s logs and purchase logs often leads to creep through without being noticed. Thus, for effective fraud evasion, knowing all your business balances is a key. The task can be time-consuming and draining but necessary when it comes to keeping you on the safe side, especially during high traffic periods. Furthermore, during these reviews, one can understand customer habits and how they change and during what periods. With a clear understanding of customer behavior, any alteration or change would be significant enough for a review to help to keep out fraudsters. In addition, this helps in incorporating a customer-centric approach to how one runs their business. Again, a review of purchases that don’t match in detail also comes in handy to further securing your clients as wells as a business.

Although fraudulent activities appear and occur in an extensive scope, the above measures and tips are proven to reduce these activities by more than 80% in every business; thus, adapting to the habit will save you financially as well as ascertaining your customers’ loyalty.

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