Training Ecommerce Employees to Be Fraud Conscious

Posted: 30th May 2017 08:26

Employees are an important part of your defense when it comes to detecting and preventing fraudulent transactions. Training ecommerce employees to be fraud conscious makes them more effective at deterring interlopers. Providing solid grounding in the following procedures will help them curtail incidences of fraud perpetrated against your business.
1. Require Verification Codes for All Credit Card Orders
Customer service representatives should insist upon AVS and CVV verification codes for all transactions. Confirming the three-digit security number on the card is the only way to verify the purchaser actually has the card in card not present transactions.
2. Mandate Strict Adherence to Fraud Prevention Program Requirements
Teach the parameters of the fraud prevention systems you employ and insist employees stick to them. Some of the most trusted are Verified by Visa, VeriSign, McAfee Secure and Master Card Merchant Fraud protection. While all have certain procedures in common, some actions are unique to each. Make every effort to ensure your team is well-versed in the procedures of the program you use to accomplish ecommerce fraud prevention.
3. Verify Rush and International Orders
Secondary verification should be required on all rush orders. People employing stolen credit card numbers try to get as much as they can as quickly as they can, because the numbers are perishable. Conversely, legitimate consumers tend to avoid incurring extra charges and rush orders cost more. These should be double-checked to ensure the shipping and billing addresses match, as well as the contact phone number. The customer should also be contacted to verify the order. Overseas orders should be subjected to the same level of scrutiny because they can’t be secured with verification codes.
4. Require Signature Confirmation for Shipments Over a Certain Amount
The person delivering the order should be required to physically see the individual receiving the goods and get their signature for big-ticket items. It’s easy for fraudsters to hide behind keyboards and telephones, so thieves are less likely to conduct transactions with your business when they know they’ll have to sign for the package when it arrives. Train your employees to inform customers all orders over a certain dollar amount will require their signature upon delivery. It’s also a good idea to insist the delivery person see valid ID as well. Do not permit shipments to P.O. boxes because there won’t be anyone to sign for them.
5. Employ Fraud Filters and Investigate All Flagged Transactions
Fraud filters can be set to flag orders over a certain dollar amount for additional review. They can also be configured to require orders from certain countries to be investigated more closely. This software can be programmed to look for card security code mismatches too. Train your employees to follow up in every instance to confirm the validity of the order. Checking the email address and IP address against the delivery address and the cardholder’s physical address should be an integral part of this procedure.
6. Any Single Red Flag Necessitates Phoning the Customer  
Employees should always call a customer whenever anything seems off. Calling verifies the phone number is correct. It also gives you an opportunity to have the cardholder confirm they placed the order and it demonstrates you’re concerned about their security. 
Training ecommerce employees to be fraud conscious will greatly reduce incidences of chargebacks against your business. In addition to the damage they can inflict upon your bottom line, excessive chargebacks can get you blacklisted by credit card companies, which will severely inhibit your ability to do business.