If online sales are an important part of your business plan, remember that fraudsters have a business plan of their own. On average, 8 percent of online revenue is lost to fraud. That’s $8 out of every $100 sold.
As your online business grows, so does the risk of losing to fraud. The risk for fraud is even higher if your website is in the “high risk” eCommerce space. High risk industries include: alcohol, cannabis, crypto, gaming, nicotine and more.
The reality is, fraudsters are scouring the internet looking for their next hit. The way to stop them in their tracks is to identify the fraudsters… before your business loses time and money.
A New York fraud ring recently swindled online businesses out of 200 million dollars. The fraud ring used thousands of fraudulent identities to exploit businesses. When eCommerce businesses use identity verification tools, they can win against fraud.
Protect online orders with these identity verification methods:
- Require that customers scan their Drivers License and take a Selfie Photo. Have your verification provider or staff use this data to verify the order.
- Verify your customer is providing an accurate: First Name, Last Name, Home Address and Date of Birth. Third party databases are able to corroborate and verify this information in seconds.
Identity verification makes sure you don’t lose to:
- Identity theft fraudsters
- Chargeback fraudsters
How to protect against identity fraud:
An order from a fraudster using a stolen identity looks eerily similar to a legitimate customer. The shipping address may be different than the billing address, but legitimate customers do that too. The credit card may have been stolen, but the fraudster disguises that.
ECommerce staff should not be making gut decisions when it comes to identifying fraud. Businesses lose money when staff are fearful of fraud and they deny genuine customers. Businesses lose money when staff aren’t fearful of fraud and accept risky orders.
These important decisions should be made with proper information. The wrong gut decision can turn into: expensive chargebacks, fraudulent orders and a sale to an underage charge.
How to protect against chargeback fraudsters:
Scanning a Driver’s License and verifying a Selfie Photo is the best way to eliminate chargebacks. Why? In the case of a chargeback claim, a payment processor will ask the business to provide the customer Driver’s License and Selfie Photo.
If your online business uses a tool like Token of Trust, you have exactly what they’re asking you to provide.
Scanning a Driver’s License and Selfie Photo mimics the brick and mortar verification process. It works for chargeback claims, it works for age-verification and it works for fraud prevention.
Win the fight against fraud:
Identity verification means less gut checks and more verified data. With identity verification, eCommerce managers finally know who they’re working with.
Token of Trust’s mission is to protect consumer data while providing online businesses the data they need to make informed decisions. Anyone can partner with Token of Trust and use our identity verification tools. Get started here.