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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