Online Security For Your Business
As most of us are now pretty tech-savie, we are all being taught about online safety. We’ve all heard the warnings about not giving out your PIN or password and watching out for fake emails from your bank. Everyone is getting quite good at keeping themselves save, but what about your business?
If you take payments through your website, are they covered by solutions such as MasterCard Securecode, Verified by Visa and American Express Safe Key? Here’s why they should be: When a purchase takes place over the internet, the card transaction is a Cardholder Not Present (CNP) transaction. These are generally considered to be more risky than a card payment taken from somebody who is present to enter their PIN. When your card processor takes the payment through your website, the standard authorisation will check that the card is not reported stolen and that there are sufficient funds available. This won’t check if the customer is the genuine cardholder. Furthermore, if the transaction turns out to be fraudulent then the full amount will be charged back, even if you have already provided the goods or services.
Do you keep an eye on your orders? If you receive an order from a new customer which is of an unusually high-value, then be wary. Particularly if the product is something that they can easily re-sell.
Even if the payment is not being taken through your website, there are risks. If somebody asks to pay by cheque or by online bank transfer, then make sure you wait for funds to clear. Fraudulent cheques may be paid into your business account and although the bank may flag this, they could take a few days to investigate and in the meantime the funds may show as having gone into your account. Watch out for the ‘overpayment scam’ too; this is where the scammer will overpay the order value with a fraudulent cheque and then ask for the extra to be sent back to them.
Fake emails are another way that fraudsters can target businesses. Invoice fraud is when somebody poses as one of your regular suppliers, they could be notifying you of a change to their bank account details. Always verify any changes with your supplier directly, otherwise they won’t receive their invoice payment and the first you are likely to know is when they chase you for non-payment.
These kinds of fraud are on the increase because the fraudsters are likely to get higher returns from scamming a business than an individual. Keep on the lookout for anything that may be suspicious and check with your bank if you are in any doubt.