Fraud: Tactics to prevent online fraud during "The Good End" & "Black Friday

Fraud: Tactics to prevent online fraud during "The Good End" & "Black Friday"

 

Due to the increase in online fraud related to shopping, there are tactics to prevent shoppers during El Buen Fin and Black Friday.

 

According to the official website of "El Buen Fin" edition 2021 in Mé xico it will be held from 10 to 16 November, while the Black Friday will be held in the United States on November 26. As data, in 2020 American consumers spent 861 billion dollars online, which represented an increase of 44% compared to 2019, according to the Digital Commerce site. As for Mexico, according to Fingerprints, in Mexico, the opening of digital wallets and the sponsorship of digital banks have grown by 30% in 2021.

 

Related to the topic, as the date of online promotions approaches, companies must take security precautions to avoid fraud. According to Vesta, its Global Card Not Present Fraud Report (CNP) revealed the average dollar amount per fraudulent transaction was the highest during the fourth quarter of each year analyzed. This indicates that cybercriminals were particularly aggressive during the holiday season.

 

That is why merchants need to implement sophisticated fraud prevention solutions to increase consumer confidence and protect their businesses. In this way, Vesta shared with NotiPress four tactics to prevent online fraud during "The Good End" and "Black Friday". The first is to use secure 3D authentication, as it is ideal for fraud protection for credit card transactions. This type of technology is three-domain insurance and is used to prevent the unauthorized use of credit cards in online purchases.

 

Fraud Prevention - Additionally, 3DS security provides an additional level of security for both the business and its customers, helping to prevent card data from being stolen and used online. It also protects in case of chargebacks for unauthorized transactions, since once the transaction has passed the authentication process, the responsibility passes from the merchant to the cardholder.

 

Another tactic is biometric authentication, which is an effective way to strike a balance between preventing fraud and preserving a great shopping experience. Since biometric technology measures the physical characteristics of a person to validate their identity, such as fingerprinting or facial recognition. It should be added, according to Deloitte's 2018 Mobile Consumer Survey, almost half of consumers with biometric technology on their smartphones have used it to authorize a purchase.

 

A third tactic is to have clear shipping and return policies, to provide customers with clarity regarding the return, exchange, and refund of their products. According to Vesta, this is a way to prevent a specific type of fraud known as ' friendly fraud ', which is when a customer uses the return process to obtain a refund. As a fourth tactic, there are fraud solutions with Artificial Intelligence (AI), this through machine learning. It should be mentioned, machine learning has become essential in the fraud detection process. When implementing a solution based on machine learning can provide buyers with a conflict-free experience with high-security standards.

 

Fraud - Finally, due to the increase in CNP fraud, it should be a priority for merchants and companies to have the aforementioned security tactics. All of this is to prevent fraud, maximize legitimate transaction approvals, and provide an optimal customer experience. Well, with the arrival of "El Buen Fin" and "Black Friday", shoppers will look for safe places in which to make their purchases online.