Being a merchant, you have a lot of responsibilities on your hands, and one of those is protecting your business against scams, payment fraud, and the like. Account takeover fraud involves hacking into financial accounts and taking control of it. ATO has recently been making headlines, primarily because of the increase in consumers who shop online and companies taking their business to the internet as well.
Aside from finding reliable high-risk merchant account processors, how can you protect yourself and your consumers against an account takeover?
Partner with Law Enforcement & Other Merchants
They say you should never talk to your competitor, but not in this case. Chances are, businesses from the same industry are experiencing similar threats of account takeover fraud. That is why it’s crucial that you discuss cybersecurity with other merchants; you can also take preventive measures and other solutions that will help you become more resilient against these threats.
Of course, law enforcement plays an integral role in the investigation of account takeover situations as well as putting fraudsters to justice if your business is subject to this type of scheme in the future.
Law enforcement officials are now trained in handling cybersecurity issues and they have extensive knowledge when it comes to the number of account fraud takeovers in the area and the possible suspects associated with these instances.
Impose Strict Security Measures for Logins and Purchases
Account takeover fraud usually happens when consumers don’t take their online security seriously. Since your business is dealing with these consumers, they are more likely to suspect your business first if they become a victim of fraud, so you need to protect the reputation of your company.
You can impose strict security measures such as strong password requirements, credit card security codes, communication protocols with customers for any unusual activity on their account, and limited login attempts.
According to research, the biggest point of vulnerability for this type of fraud is the consumer, so it’s imperative that you impose these preventive measures to protect both your consumers and your business interests.
Learn More About Your Customers
One of the most effective ways to figure out when fraudsters will strike is by knowing your customers’ behavior.
There are tools that make this possible such as geolocation, which lets you know a customer’s location. If you notice that there’s a sudden change in the login location, you can flag this immediately and get in touch with the customer to confirm whether or not they are in the area.
You can also train your team to look for signs of account takeover fraud that they need to raise with customers immediately before things get worse.
The Takeaway
Account takeover is downright dangerous and damaging to any business but it’s also preventable with the right measures, effective high-risk credit card processing tips, and a reliable merchant provider that can offer the best security for both you and your customers.
Invest in cybersecurity to ensure that your interests are protected when doing transactions online.
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