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Reasons Your Company Should Care More Aboutand What to Do About It

Major companies like Sony, Experian, and even Yahoo have experienced such large and wide-scale data breaches that their misfortune managed to make front page news. Hackers are becoming more sophisticated, and with the invention of the dark web, almost no individual consumer’s personal information is safe. While customers can do what they can to keep their credit cards, bank accounts, and financial information as safe as possible, businesses also have to take extra steps to protect themselves. So, besides treating each new customer as a potential scammer, what can really be done? Read on to learn how you can safeguard your company from fraud, unknowingly facilitating identity theft, and being bilked out of your well-deserved profits.

Improve the Security on Your Company’s Websites

The number one way that fraud is committed is through web security breaches. For instance, a database of customer information could be found, exploited, and leaked by a hacker simply because a company’s web security was not up to par. You have to beef up your security first to protect your customers and secondly to avoid being liable for damages. Customers who use your website to complete orders and access their accounts are trusting your business to keep them safe, so don’t let them down.

Check to See Your Customers Are Who They Say They Are

Whenever an order is made online, the personal financial information of consumers is sent through multiple channels. While your job as a business owner is to keep that data out of the hands of hackers and scammers, you also have a duty to protect your business as well. Using theidentity verification servicefrom Cognito can prevent fraudulent charges from going through in the first place. Your company will have to deal with fewer chargebacks and fraud investigations. You will also maintain the confidence, trust, and long-term respect of customers when they know you are taking additional measures to prevent fraud.

Implement an Additional Layer of Checks and Balances

Anti-spam and consumer protection laws prevent marketers from arbitrarily sending out mailings, advertisements, or soliciting consumers in any way until they verify that the information that they have is valid. When new consumers signs-up to receive emails, businesses have to verify that they both have the right email address as well as confirm that the consumer indeed consents to receive future mailings. While it does take more time and intensive mailing list management to ensure that all of their data is up to date, it also saves businesses a lot of trouble in the long haul. By implementing these kinds of checks and balances, they know that they are on the right side of the law, safe from the threat of fines and potential prosecution and that their customers are only being contacted when they want to. Approach fraud protection in the same way and you will mitigate your risks.
For whatever reason, identity theft is becoming a bigger and more global issue. If your business is going to thrive in a global economy, you have to be setup to deal with digital threats of all kinds. Tackle fraud by putting up lots of layers of protection and keep both your business as well as your diverse customer base safe.

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