The majority of business transactions today occur via credit cards, but that doesn’t make them inherently safe. Credit card fraud is an unfortunately common thing. The Nilson Report found $24.26 billion in worldwide fraud losses, with a 38.6 percent portion belonging to the United States and an estimated projection of $34.66 in losses by 2022.
With so much money going down the drain, it’s important for every business to fight back in whatever way they can. Credit card fraud is both disruptive and destructive to a business. Through strong prevention methods, any business can avoid credit card fraud. This is how you do avoid credit card fraud the right way, courtesy of StartupNation.
Search For Warning Signs
The warning signs are there. Keep a lookout for suspicious behavior, including:
- Not having a credit card in a wallet or purse.
- Getting a bunch of weird, expensive things.
- Getting a wide variety of items that fails to make logical sense.
- Rushing the cashier during closing time, for retail businesses.
While it doesn’t always mean that someone is committing fraud, these few instances can help you track down and be ready for fraud when it happens.
When your business utilizes a company card for purchases, keep a close eye on the bills, and make sure that all purchases are accounted for. Requiring that all employees have their purchases vetted before making them is a way to ensure that there are no under-the-table uses of company credit.
Accept Online (And All) Payments Safely
Online payments account for 45 percent of all credit card fraud, meaning that it’s imperative to also make sure your website is completely foolproof from fraud. Take extra precaution when it comes to online billing; while you may not be able to physically see the culprit, it’s still possible to pinpoint them out. Look for things such as:
- Orders with several of the same items.
- Orders made up of only big items that have high resale pricing.
- Multiple purchases from the same IP address.
Looking out for your online payments will immensely help with any fraud issues that you might have. As a business, it’s important to remain vigilant.
Other Ways to Prevent Fraud
Other things that you can do to prevent fraud include having a type of plan in place to protect your business; this plan should include always checking the ID of a credit card purchaser. And when fraud happens, be sure to report it as soon as possible.
The final layer of protection includes purchasing Management Liability Insurance.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (201) 847-9175 to speak with one of our professionals.