With the appearance of twinkly lights and holiday treats comes an increased amount of credit card fraud. Small businesses are particularly susceptible to criminals because they are seen as being softer on prevention. But that doesn’t have to be the case. Your Marketing 360 Payments team has put together a list of ways you can prevent and spot fraudulent charges. Implementing the latest technology, security measures and knowing your customers’ behavior is at the core of a fraud prevention plan.

1. If you haven’t done so already, update your point-of-sale (POS) technology to ensure that you are EMV compliant. Two types of businesses will be targeted this season – online retailers and businesses that have not implemented EMV technology.
2. Know your customers. Studies show that this is the most effective way to prevent fraud. Know their buying habits and ask your employees to start conversation with people they don’t recognize. If someone is planning to use a stolen credit card they aren’t going to be interested in small talk.
3. Monitor online purchase data to identify red flags. Some things to look for are IP addresses coming from overseas that don’t match up with the billing address and email addresses that look unusual like jhm2429753@earthlink.com.
4. Always require a phone number for an online order. If shipping and billing addresses don’t match then the chances of fraud are much higher. During the holidays, this doesn’t necessarily equal fraud as people send gifts, but when you have a large purchase with this scenario it’s always a good idea to call to confirm the order before shipping.
5. Use data from past years to anticipate fraudulent activities and theft. By incorporating predictive analytics with your SKU numbers and anticipating your sales for the season, you have a greater opportunity to identify sales indicators and set up alerts. When something goes off trend, you can dig deeper to ensure it isn’t a sign of fraud.
6. Review daily purchases to be sure that the same credit card was not used for multiple orders on the same day or to different addresses. Thieves rarely work alone and this can be an indication of a crime ring.
7. Protect your customers from identity theft. While fraudulent charges cost you money, the damage that will be done to your business if customer information is stolen can be devastating.
   • Only use data that has been encrypted on a password-protected computer.
   • Secure information that is repeatedly used, for example, through loyalty programs.
   • Make sure your e-commerce software is secure and is housed on a secure server. Marketing 360 Payments offers several options for merchants that have advanced security measures built in.
8. Block cards after multiple transaction attempts. Most systems have a maximum number of times a purchase can be attempted and declined before a user is automatically blocked. Make sure this feature is enabled in your software.
9. Always require the security code for authentication. Unless a thief has the card in hand, it is very difficult for them to steal this code. All credit cards have this security code, which is three or four digits and referred to as the CID, CVV2 or CVC2.
10. Use a fraud profiling service. If your volume is too high for you to keep up with the above measures manually, then consider using a service which will cross reference all of your transactions for signs of fraud and alert you when necessary. They can also help you identify behaviors that make you more vulnerable. Marketing 360 Payments can help you get on board with tools that will help you prevent fraud and run a more secure business. We are here to help your business grow richer. Schedule an appointment today or call your current customer service representative  to get started.