Unfortunately, nearly 50 percent of small businesses fall victim to fraud at some point in their business lifecycle, according to the Association of Certified Fraud Examiners. This costs small business owners an average of $114,000 per occurrence. In addition, if a small business accepts a fraudulent payment – aside from phishing and hacking – it could be held financially responsible for the loss.
It goes without saying that having to worry and deal with a fraudulent transaction is unpleasant for small business owners. The chargeback process and the potential loss of your business’ reputation are never easy things to handle, all while still trying to successfully run your company. If this is a big concern for you business this year, you will be glad to hear there are several tips that will help you minimize your risk, protect your business and your customers from cyberattacks.
- Ensure PCI Compliance.The Payment Card Industry Security Standards Council (PCI SSC) has developed a set of best practices to safeguard consumer data in order to help businesses protect themselves and their customers from online fraud. While compliance with these standards is not optional for online retailers, it’s important to keep up with these standards to protect your business.
- Manage Your Risk. Putting the right tools and processes in place will help you reduce the chances of an attack; this is especially true if you accept bitcoin payments. It will also help you keep your business and customers safe, and reduce the chances of losing revenue and high chargeback rates.
- Daily Monitor Transactions and Reconcile Bank Accounts. It’s important to regularly monitor your accounts and transactions, so you can quickly identify red flags like inconsistent billing and shipping information. There are tools available that can easily help you track customer IP addresses; these tool also alert you to any addresses that are suspicious.
- Require the Card Verification Value (CVV). The Card Verification Value (CVV) is the three- or four-digit security code printed on the back of credit cards. PCI compliance rules prevent you from storing the CVV along with the credit card number and card owner’s name, which means it’s virtually impossible for fraudsters to get it unless they’ve stolen the card.
- Get Chargeback Insurance. Chargebacks are a huge problem for many small businesses, and they’re expensive. The best decision you can make for your business is to secure chargeback protection and chargeback insurance. These services can not only protect your business, but also help you manage chargebacks when they do occur.
Above all, make sure that all business platforms and software are up to date. With a little time and preparation, you can significantly reduce your risk of cyberattacks.
Author Bio:Electronic payments expert Blair Thomas is the co-founder of high-risk payment processing company eMerchantBroker. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.