When they’re experiencing growth, almost all startups are forced to confront fraudsters and cybercriminals. The specific act of fraud doesn’t matter as much as their response to it. If they have lofty aspirations, merchants should take a proactive, rather than reactive, approach to fraud prevention. If they do, however, choose to wait until after an attack to implement a sufficient fraud prevention system, the damage will likely already be done.
Before they even think about attracting consumers, launching advertising campaigns or making sales, startups should craft an effective fraud prevention strategy. Unfortunately, in today’s digital world, fraudsters and cybercriminals also have access to enhanced technology, which means they have the capability to launch sophisticated attacks.
But there are various ways for startups to secure their businesses and protect against cybercriminals. In most cases, fraudsters will attempt to bypass the protections on a merchant’s site, to steal all their consumer’s sensitive data. Merchants can prevent this from happening by utilizing encryption, which will add a layer of security to their online site, making it harder for nefarious criminals to access that data.
Since you never know where these fraudsters are, or when they might strike, it’s also important for startups to secure their wireless networks. Cybercriminals will seek out weakly protected networks, where merchants have most likely stored a lot of data, hoping to gain access to confidential information.
If a fraudster or cybercriminal succeeds, they will, most likely, use card credentials to purchase products or services from a merchant’s online store. They usually act quickly and order a lot of high-ticket items in a short period. It’s clearly important to protect consumer data but, at this point, merchants will need a tool that can detect fraudulent transactions, and prevent them.
Cardinal Consumer Authentication (CCA), our authentication solution, can do that, by allowing issuers to send challenges to certain merchant’s consumers if they deem a transaction is unusually risky. With CCA, merchants will also have the power to create rules that will determine the riskiness of their transactions, so legitimate consumers will still be able to purchase products and services with ease. With One Connection to Cardinal, we can Drive your Digital Commerce.
Learn more about different types of fraud with our eCommerce U courses!