The rapid increase of urbanization has powered a massive boost in the e-Commerce industry. As consumers seek new and convenient methods for their sales need, the e-Commerce industry is growing rapidly.
The global e-commerce market size is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027. However, the e-commerce industry’s momentum bolstered by the growing penetration of the internet has also marked a steady increase in e-Commerce fraud. The explosive growth of E-Commerce is attracting cybercriminals to defraud digital businesses. Cybercriminals attempt to take over the customer’s accounts to steal their login credentials to make unauthorized transactions. Credit card fraud rates have also increased significantly. In 2018 alone, $24.26 Billion was lost due to payment card fraud worldwide.
To check into the loss of revenue due to increasing online fraud, businesses need to adopt a fraud detection and prevention system. Companies can integrate the best e-Commerce fraud detection software into their system to prevent and identify fraudulent activities. With this, the companies can actively monitor and take real-time action to counter the risks in the e-Commerce website.
However, choosing the right Fraud Detection Software from the multitudes of software available in the market can be a daunting task. This article lists eight tips that will enable you to make the right choice.
Real-time Transaction Screening and Review Automation
Artificial intelligence and machine language based fraud detection software can continually assess the incoming data. Data processing happens in real-time augments the capacity of the human workforce. It will help your company to comply with the regulatory requirements by screening transactions and customers in real-time. This will significantly mitigate the risk of prohibited transactions, hence giving businesses the ability to provide a secured user interface.
Deep Insights On User Behavior
Monitoring the activities of the customer can help to detect the possible causes of infiltration in the online transactions. Fraud Detection Software with ML capabilities can learn from streaming data and recognize the emerging fraud patterns. Any discrepancy will be tapped to detect a new fraud scenario.
Approval Rates and False Positive Handling
False declines can cost your e-Commerce business a decline in revenue and can also decrease your customer base. False positives or false decline happens when a customer’s legitimate transaction is incorrectly rejected. To actively prevent such cases, the fraud detection software needs to assess every transaction in a broad context, going beyond location and transaction amount. This will help to minimize the probability of rejecting legitimate transactions and increases the ability to block fraudulent ones.
Dashboards can help the customers to monitor their activities and learn about the status of their orders. Other additional details like the payment method, location, and channel information will also be readily available to the customers on such platforms. Fraud Detection Software can integrate the dashboard where such information can be readily available to both the companies and the customers.
Additionally, the software should also provide 24/7 assistance to the customer if they face any issue. Reduction in response time is important for better customer support.
Fraud detection software providers come at various prices. Some of the software providers have fixed subscription plans, while others extend flexible pricing based on business size and industry, annual sales volume, and other associated factors. Software providers may charge you according to the nature of the transaction. You can choose a suitable software as per your needs. A software tool acts as a cost-efficient alternative to an in-house fraud prevention team.
Compliance With Security Standards
You need to analyze if the software solution is compliant with your data security protocols. You need to ask your vendor to provide the necessary documentation which lists down the product’s compliance support policies.
Integration and Deployment
Ask your software provider about the average deployment time of the software solution. Assess the process of deployment to check if the solution can be deployed easily without much hassle. You can also do quick research and find out the client base of the service provider. Enquire them to gain critical insights into the software’s efficiency and learn about the deployment pitfalls. Ensuring that the software is compatible with your e-Commerce platform is of crucial importance.
Comprehensiveness and Self-learning Capability
Your fraud detection software should be versatile, i.e., it should be able to identify multiple types of fraud. The software should be able to perform efficiently to process massive data flows. With this, it will be able to learn about new types of fraud and cyber threats.
In recent years, e-commerce fraud has risen to unprecedented levels. To keep this in check, you can integrate a software solution into your e-Commerce platform. Check for the aforementioned features and characteristics while selecting a fraud detection solution for your business.