When you operate an eCommerce business, international sales are exciting. It serves as a sign that your business is growing. However, international eCommerce also exposes your business to more fraud opportunities, which potentially imposes serious costs on you and your business. Taking steps to detect and avoid fraud can help you grow more safely into international sales.
Signs of Potential Fraud
ECommerce fraud can be difficult to spot; your payment processing system runs payments on cards you never see, so if the information on the card matches up, it often goes through. But, you can set up your processing to flag particular concerns, if you know what to look for.
Some countries have higher fraud rates than others. Transunion reports that Indonesia, Venezuela, South Africa, Brazil, and Romania have the highest rates of fraudulent transactions, with African nations having high rates as well. If you have transactions processed from these countries, having safeguards in place to confirm validity can be important.
Further, transactions that go outside of typical patterns can raise red flags. Large orders, multiple orders from new customers, and orders at strange times should raise your antennae for the potential of fraud. If you start to see a string of activity from the same source, that can indicate a potential problem as well.
Ways to Fend Off Fraud
Fortunately, there are ways to help prevent and detect potential fraud. When you run international sales, one of the key tools you should use is geolocation. Track the IP addresses from which you are processing orders. If you suddenly get groups of orders clumped in the same area, that calls for some follow-up to verify the orders. Similarly, international IP addresses used for shipping to U.S. addresses, or addresses far from where the IP address originated, can indicate a cause for concern.
Giving customers the ability to create and log in to an account can give you additional peace of mind. Collecting information from your customers can provide a way to confirm identities, and to identify discrepancies in ownership of payment accounts used. This gives peace of mind to both you and your customer that you are taking care of their needs.
Finally, you should work with a payment processing company that develops and updates its security algorithms to pick out discrepancies and identify potential fraud. This high-tech solution works behind the scenes to help protect you and your orders.
International sales can open up means of fraud against your business. Still, growing into international sales serves as a prime opportunity in the online world, one you do not want to give up because of fear. Set up a system that checks for problems and confirms data for you to both protect yourself and grow in the eCommerce world.