When it comes to online credit card fraud, it’s best to err on the side of caution. The solution: Be vigilant and trust your instincts. Often, this is just because of confusion on the cardholder’s end, but it can sometimes be intentional and malicious. This is when a purchase is made, goods or services are delivered, and then the charge is disputed with the cardholder’s issuing bank. There’s also the problem of chargeback fraud, sometimes known as friendly fraud. Fraudsters will often use bots to consecutively attempt hundreds of card numbers until one goes through. This is a particularly perplexing issue, as it’s difficult to verify the legitimacy of a transaction without access to the physical card. This protects against hackers, but also disgruntled employees that might write down a card number when they’re let go.Ī 2017 report from the US Payments Forum found that, due to the increased security of EMV chip cards, fraudsters had begun to shift their focus to card not present (CNP) transactions. When an employee is looking at that cardholder’s file, they should only see the last 4 digits of the card number. That’s because the information is encrypted and stored by a secure third-party. CREDIT CARD TRANSACTION RISK ENGINE FULLIf a cardholder’s information is on file with a business, they typically won’t have access to the full card number. In this scenario, card information would be encrypted and stored with a PCI compliant third-party. The requirements to safely store full card information are almost impossible for a small business to meet, but there’s a way to enjoy the benefits of storing cards with none of the risk. All merchants that process credit cards, even just one or two a year, are required to meet the standards. These standards were created by the card associations to foster safe processing environments. PCI DSS stands for Payment Card Industry Data Security Standards. The solution: Store information in compliance with PCI DSS. If your business schedules recurring payments or has repeat customers that want to keep a card on file, that information needs to be stored securely. Even worse, if your business experiences a data breach because of improperly stored card information, you’re subject to remediation, fines, and-potentially-the inability to accept credit cards. Storing full credit card information can make you a target for hackers or even exploitation by your own employees. Improperly Stored Credit Card Information CREDIT CARD TRANSACTION RISK ENGINE FREEIf you’re not sure where to start, Travelers has a free cybersecurity guide that addresses this issue in further detail.Ģ. This should cover everything from recognizing suspicious emails to securing company-issued laptops and cellphones. Make sure to address cyber awareness in your company policies and training program. The solution: Arm your employees with the knowledge and training they need to securely handle customer and company information. CREDIT CARD TRANSACTION RISK ENGINE INSTALLThe cause? A single employee in the company’s technology department didn’t install a recommended software update. One example is the now infamous Equifax breach of 2017, in which the personal information of almost 146 million Americans was exposed. According to this study conducted by the Ponemon Insititute, 54% of data breaches are caused by employee negligence. One often overlooked fact is that the majority of data breaches stem from internal employee error. But not all security risks come from outside the walls of your business. You even have a top of the line firewall. You’ve set up a separate Wi-Fi network for guests. CREDIT CARD TRANSACTION RISK ENGINE UPDATEAll of your users have personalized passwords that they update on a regular basis. You know how important it is to invest in a secure network. CREDIT CARD TRANSACTION RISK ENGINE HOW TOKeep reading for our top 5 security risks in credit card payments (and how to protect your business from them): Unfortunately, it’s impossible to prevent 100% of security risks, but there are steps you can take to mitigate those risks. When there’s a new data breach headlining the news every few months, what’s a business owner to do? Technological innovations like EMV chip cards and CAPTCHA continue to make payments more secure, but fraud and data security are issues that will plague businesses large and small for years to come. But accepting credit cards means accepting the unique challenges and risks that accompany them. In this day and age, accepting credit cards is a necessity for your business.
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