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You Might Have a Fraud Problem If…

posted on: Tue Sep 16 2014

From eBay to Target to Home Depot, we’ve seen some notable brands get hacked in the past year. Previously we shared how Kount sees telltale signs of a breach, often before the victimized company realizes it has a big problem. And by the time that problem is public, fraudsters around the world have had fresh account information for weeks, putting every online retailer at risk.

Even if your business doesn’t carry the bulls eye of a big brand, the odds are a fraudster somewhere will test your security for a weakness to exploit. Perhaps its already happened and you don’t know it yet. If any of the following questions ring true, you may have a fraud problem:

  • Do you find out about fraudulent transactions only after you get charged a chargeback fee?
  • Are your chargeback rates over 0.5%?
  • Are you experiencing a high rate of shopping cart order abandonment?
  • Do you reject/decline more than 1% of your orders?
  • Do you have high affiliate turnover?
  • Are you manually reviewing 10% or more of your orders?
  • Do you hesitate when accepting orders from certain IP addresses, geographies or countries?
  • Do you use techniques like trial charges?

Certainly this is not a comprehensive list, but if you answered yes to any of these you might want to take a second look. We’ve seen many of these indicate or lead into more serious challenges, regardless of a retailer’s size or industry.

One of the more notable signs, increasing chargebacks, can threaten your bottom line and the state of your business in a hurry- especially after the holiday rush. And when you spend more time reviewing and declining orders than before or avoid certain geographies entirely, you could be giving up legitimate opportunities to grow your business.

So what should you do? Take a look at the signs above and determine how they impact your business. Then take time to look at the options for online fraud protection. Or, if you happen to be in Los Angeles or Austin, join us for the Fraud 360 Seminar where Kount CEO Brad Wiskirchen will share what you can do to protect your business from the continually evolving threat of online fraud. Brad will also be joined by an industry expert to discuss EMV technology and other members of the Kount team who will cover mobile payments and preparing for Cyber Monday. Learn more and register at our Fraud 360 page.

Can’t make it? Follow us on LinkedIn and we will share some seminar highlights as we continue our tour this month.