Avoiding Fraud During The Holiday Season

The holiday season brings joy, festivities, and a rush of sales for businesses across industries. However, it also brings increased risks of fraud as cybercriminals and scammers take advantage of the busy period. At Tech-Payments, we want to help protect your business from potential threats so you can focus on ending the year on a high note. 

Whether you’re running a brick-and-mortar store, an eCommerce site, or a mobile service, staying vigilant and taking proactive steps can safeguard your transactions and data. Here are five essential tips to reduce your risk of fraud during the holiday season.

Protect Against “Card-Not-Present” Fraud

With more people shopping online or paying via mobile devices, card-not-present (CNP) transactions are on the rise. While this offers convenience for your customers, it also opens the door to fraud when a physical card isn’t required for payment. To reduce the chance of this type of fraud, ensure that the billing address provided by the customer matches the one on file with the credit card company. This adds an extra layer of verification for online or mobile transactions.

Always request the card verification value (CVV) when processing online payments. This three- or four-digit code helps confirm that the customer has the physical card in their possession.

Additionally, always keep an eye on unusual activity, such as multiple large orders from the same IP address, inconsistent shipping and billing addresses, or orders made in rapid succession. Tech-Payments’ remote management tools allow you to track transactions in real-time, giving you instant visibility over your account.

2. Watch Out for Unauthorized Use of Credit Cards

The hustle and bustle of the holiday season can lead to cases of unauthorized card use, whether it’s someone making a purchase with a stolen card or an individual using a family member’s credit card without permission. While these cases can be tricky, there are steps you can take to protect your business.

• Request Additional Verification for Large Orders: For high-ticket items, consider requiring a signature or a call-back verification. This can deter fraudsters from placing large orders they don’t plan to pay for.

• Educate Staff on Suspicious Behavior: Train your team to spot potential red flags in person and online, such as customers being evasive when asked for ID or declining to provide required cardholder information.

• Have a Clear Return and Refund Policy: A well-defined policy can help protect your business from fraudulent chargebacks. Make sure customers are aware of your terms, and always keep records of transactions to back up any claims you may need to make.

It may seem redundant, but it’ll be worth it if it saves your business from fraud! 

Implement Two-Step Verification for Logins

Cyberattacks are a major threat to businesses, especially during peak holiday sales periods. One of the simplest and most effective ways to safeguard your business accounts is by implementing two-step verification (2SV) for all logins. Even if a hacker manages to steal or guess a password, 2SV requires them to pass an additional verification step (like a code sent to a mobile device) before gaining access to your accounts.

If possible, enable 2SV for both your employees and customers. This ensures that login attempts to sensitive areas, like your payment portal or customer management system, are protected. With Tech-Payments’ systems, you can implement security features like two-step verification, making it harder for hackers to gain access to your business’s accounts.

Pay Extra Attention to Your Credit Card Statements

Amid the holiday rush, it’s easy to overlook minor discrepancies on your credit card statements. However, fraudsters often rely on this inattention, hoping that small unauthorized charges will slip through unnoticed.

Make a habit of reviewing your business credit card statements weekly, if not daily, during the holiday season. Look for any unfamiliar or questionable transactions, no matter how small.

Many credit card companies offer fraud alert services, sending you notifications when suspicious activity is detected. Taking advantage of these alerts can help you catch fraud early and minimize potential damage.

If you notice anything out of the ordinary, contact your payment processor or credit card company right away. The faster you act, the less impact fraudulent charges will have on your business.

Be Aware of Phishing Scams

Phishing attacks increase dramatically during the holidays as hackers attempt to steal passwords, credit card information, and other sensitive data by masquerading as legitimate businesses or institutions. These scams usually involve fake emails or websites designed to trick you into providing personal information.

To combat fraud, you should always be cautious when receiving unsolicited emails or text messages, especially ones that claim to be from payment processors, banks, or trusted institutions. If the message urges you to click a link or download a file, double-check the sender’s details before taking any action.

If you receive a request for sensitive information, such as your login credentials or credit card number, contact the institution directly through a verified phone number or website. Don’t rely on the contact information provided in the suspicious email.

Lastly, make sure your staff is aware of phishing scams and knows what to look for. Training employees to spot suspicious emails or links can help protect your business from falling victim to these schemes.

Keep Your Business Safe This Holiday Season

The holidays are an exciting and busy time for businesses, but they also bring increased risks of fraud. By taking steps to protect your transactions, implementing strong security protocols, and remaining vigilant against phishing scams, you can keep your business and customer data safe.

At Tech-Payments, we’re dedicated to helping your business not only thrive but also stay secure. From fraud prevention tools to advanced security features, we offer the support you need to enjoy a safe and successful holiday season.

Wishing you a fraud-free and festive holiday season from all of us at Tech-Payments!

Let us know if you have any concerns about fraud prevention or need help implementing security features for your payment systems. We’re here to help!