What Security Concerns Prevent Customers From Buying Online?

Online fraud is expected to increase in the next few years. Some analysts expect this to rise as much as 106% over the next three years. Customers and businesses are right to be concerned, with security worries one of the main reasons consumers are unwilling to complete purchases online.

Data breaches are also on the rise. Big brands, from eBay to Home Depot, Adobe to Evernote, are under threat from hackers and cyber-criminals. As online and mobile commerce hassecurity increased, so has the long list of opportunists looking to exploit the data. Over the last few years, hundreds of millions of details have been stolen.

In the UK alone, card association figures show that remote purchase fraud (CNP) was worth £331.5 million in 2014 (up 10% since 2013), with over 1 million accounts defrauded. Ecommerce makes up the bulk of those cases.

The biggest fear, for customers, is their payment and identity details will be stolen, allowing criminals and hackers access to bank accounts, credit cards, and other online accounts. Identity theft remains a serious concern. Consequently, it is more important than ever to provide a secure checkout and reassure customers that their data is safe in your hands. Here are a few ways you can mitigate the risks associated with online shopping.

How To Reduce The Risk Of Fraud (and reassure customers)

  1. End-to-end encryption and tokens

Most payment providers take security very seriously. Once a customer enters details using an online form they should be encrypted and sent to a secure server. Tokenisation also ensures that the merchant does not store card numbers. Instead, each transaction is given a unique “token”, making it only relevant to that payment and worthless to a hacker.

  1. Verify cards / Billing address

Knowing your customer means verifying the cardholder is who they claim. The most effective way is to verify the CVV number (Card Verification Value), on the back of the card and address verification system (AVS). This should match the address on file with the card issuer or bank.

  1. Implement 3D Secure

All of the major card brands offer a 3D secure solution, which is an extra layer of security that acts like a PIN number in stores. These systems protect everyone, including the merchant, from fraudulent transactions. Make sure your payment gateway works with 3D secure systems. Many customers recognise and trust this additional layer of security, but in not in all regions; therefore if you are operating a cross-border ecommerce site make sure 3D Secure is supported, or get advice from your PSP on a local alternative.

  1. Ensure your website has a Secure Socket Layers (SSL) certificate

SSL certificates are a way of verifying that data passed between a web browser and a server is encrypted. All reputable payment providers should have SSL activated, which works in the background to keep customer details safe. A padlock symbol should also appear in the browser when SSL is activated, may customers will look for this symbol of security.

Customers are right to be concerned about online security. As a retailer, your job is to ensure their details are safe. Payment providers invest millions in security to reduce risk and address a continually changing landscape – inevitability when one vulnerability is protected, criminals look for another.

It’s important to find a payment provider that always aims to be one step ahead of hackers, especially with much of the burden for detecting fraud now moved over to merchants. Keeping your customers safe is the best way to protect your business.

If you have any questions about payment fraud prevention, contact our fraud team: you can use the contact form here, call +44(0)8082736101, or email [email protected]