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Reducing Fraud Risk Through Secure Ecommerce

By 12 May, 2014 No Comments

If your business accepts credit card payments then you are susceptible to credit card fraud and computer hacking. High Street retail stores and ecommerce businesses acknowledge this danger and have taken measures to address this growing problem.
They have reset their credit card processing systems to integrate secure technologies and protocol that effectively blocks card fraudulence. Though not totally fool proof these protocols have dealt quite successfully with the threat that faced retail businesses, accepting the fact that they practically all use the credit card payment system.
Ecommerce websites are also susceptible to being compromised by fraudsters and hackers and it is imperative that they protect the business and their customers. To do this ecommerce business should ensure they are PC1 compliant with industry best practices for credit card payments. The council governing PC1 security standards are endeavouring to simplify the process of protecting customer information from fraudsters and website hackers. This will regulate PC1 data security standards on ecommerce website software solutions and ensure minimum level of security attributes in database archives on the Server and the physical premises of the Server. Non compliance with PC1 standards can nullify a company’s sanction for processing online transactions. No ecommerce website owner can afford to lose the online transactions of their business. Customer security demands that businesses adopt the appropriate initiatives to stamp out fraudulence and protect their integrity. The outlay of any fines for non compliance would be better spent on a skilled website design team in the first instance.
The problem arising from a hacked ecommerce website is that the fraudsters can validate card numbers with small purchases. Once validated the card can be used at a later date to withdraw large sums of money. These criminals can even convince merchant accounts to credit back funds to a stolen card account. The card holder in this way does not notice the changing account balance in the short term. Another fraudulent practice in ecommerce websites that have been compromised is to replace the payment data. While ecommerce business orders move towards completion criminals can divert payments to their own forged accounts instead of the merchant account. There is always a question of responsibility regarding securing ecommerce websites. Is it the website provider or the payment gateway agency who takes responsibility of credit card transactions? This issue will undoubtedly be resolved in the future with tighter security all round.