Fraud, Risk Management

Online Business Fraud Prevention & Risk Management Solutions


Starting Business can offer you fraud prevention and effective risk management solutions for your online business. Helping you to develop the most effective risk management procedures suited to your companies needs, and developing your own fraud prevention system.

Online Fraud

Any online retailer at one point or another will experience fraud. This is almost inevitable, for as long as you are processing CNP (Card Not Present) transactions, you have no physical fraud checking procedures (Signature verification, Name checking and even in some cases checking identification documents like driver licenses). However, most processing companies have come to realise that there is a risk with processing payments online. Therefore most merchant account processors now stipulate that certain fraud tools are used, like AVS (Address Verification System) or Age verification systems.

Fraud Prevention

Although merchant acquirers are integrating these verification tools into their processing systems, it is still important for the merchant themselves to be aware of what they are processing and to monitor customers to minimize fraud. There are many ways to do this, however the most important fraud prevention tool is to pay attention. If you are an online retailer, watch out for large transactions for wide ranges of goods. The same goes for multiple transactions from the same shipping address, whether they use the same card or different cards for each transaction.

Risk Management

Risk management does not refer to the management of the risk of fraud, but rather refers to the management of risks that are posed from your clients. Effective risk management goes further than fraud prevention when it comes to customer identification verification. Risk management is generally used when selling high end goods, or where the merchant expects to process a large number of high value transactions. Risk management is designed to eliminate the risk of Fraud with Card Not Present transactions.

Typically risk management is used to identify the customer, as well as to get authorization from the customer that is similar to the credit card slip issued from a POS (point of sale) credit card terminal.

If you require effective fraud and risk management, Starting Business can help you develop the most effective risk management solutions for your business.

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