How To Protect From Online Frauds

With the increase in the payment options on the eCommerce platform the threats/frauds increased twice as that of the online store sales.  So you need to protect your business as well as customers from these potential threats. First, it is important to all the potential threats which you can encounter, to know check ‘Different types of online/eCommerce frauds you should know about’. Then Use proper E-commerce fraud management system to secure your customers’ data and identify threats. To help you we have compiled the list of tactics which you can follow to keep your customers safe:

  1. All systems should be PCI Compliant
    The payment legitimate institution fixes some guidelines/rules for securing the payment card information/ data. Choose the right platform like Magento or any other tool that ensures that your online store follows all these guidelines to avoid any such frauds/ threats in the future. PCI compliance may include creating a firewall between the internet and system storing card details.

  2. Address verifications 
    To avoid a large portion of frauds on your eCommerce store, for all purchases you can make it compulsory to define postal/zip code. If any fishy activity is identified you can put the customer under blacklist depending on the security compliance followed.

  3. Make the CVV compulsory for all card transactions 
    To avoid fraud transactions on your online store, make it compulsory that for every card transaction customer should enter his CVV/ three identifying numbers on the back of his card.

  4. Track every activity of your customer
    Tracking customer behavior can also help you to detect any wrong activity and helps to protect your business from frauds and this can be done by investigating purchase history, delivery addresses used. 

  5. Taking signs to authenticate delivery
    To avoid fraud, make it compulsory to take the signs of the customer on the delivery of the product/ items so that you can authenticate that the parcel delivered to the right person and to the right shipping address declared.

  6. Strong Passwords
    To avoid identity theft/frauds make it compulsory for the customer to use strong passwords that are in the combination of a few small letters, capital letters, numbers, and special symbols.

  7. Learn from the prior attacks
    Keeping the track of frauds history helps you detect the pattern of frauds done on your eCommerce and also helps you to identify the regions from where these frauds are most frequent.

  8. Be Extra careful during Holidays 
    Most people due to their busy life make purchases during holiday sessions so it is the most crucial time for online businesses as customers may not take precautions. So, this increases the chances of fraud. As a business holder to avoid any type of fraud be extra careful of the rush orders, multiple small orders, and foreign orders and ensure your customers follow all the precautionary measures declared by you like making it mandatory to provide CVV on every card purchase, declare strong password, etc.

  9. Identify suspicious activities through reports generated
    Reports can help you to detect the suspicious activities below and these ultimately help you to identify the frauds to your eCommerce: 

  • Multiple orders using different cards
  • Multiple orders with same credit card
  • A sudden change to the shipping address
  • Multiple orders with expedited shipping
  • Use of the Phone number that mismatched declared addresses

Either you are running a small or mid-size Ecommerce, it is vulnerable to frauds so it is important to know which type of fraud you can encounter in your online business. As fraudster thinks twice ahead of you to affect your store and hence your sales and revenue.  To tackle these frauds, You need to incorporate high-quality fraud detection and management system solutions.

Detect frauds by yourself by generating reports of your eCommerce activities or take help of any third party or can use both. This will help you to protect your online business.


Incaendo with their experience in the industry can also help to detect any type of fraud in your store and help you to take precautionary measures. Try our services today! Contact Us


Posted by: Incaendo
frauds, threats, eCommerce frauds, protect