The exponential rise of the e-commerce industry has been triggered by an increase in internet and smartphone penetration. As the population is getting more dependent on their smartphones to access the services conveniently, the growth of these e-businesses is becoming more pronounced.
The global e-commerce market size is expected to grow at a compound annual growth rate (CAGR) of 14.7% from 2020 to 2027. However the explosive growth of e-commerce has also increased the percentage of fraudsters who attempt to defraud digital businesses. According to a study, the most common types of e-commerce fraud are identity theft (71%), phishing (66%), and account theft (63%). Through these fraudulent activities, the cybercriminals gain hold of the sensitive data to make unauthorized purchases or to manipulate the consumer.
Cybercriminals target the personal information of the user, along with their credit card or account information. By integrating the e-Commerce fraud prevention software, companies can protect the information of their customers to secure it from exposition to fraudulent activities. The software solution also helps the organization to monitor and take real-time action against the malicious activities that can expose their e-Commerce website to various risks.
How do you choose the right Fraud Detection Software? This article lists the features, characteristics, and key providers to choose suitable software for your organization.
Features Of A Fraud Detection Software
Some of the essential features of fraud detection software are:
Real-Time Transaction Screening And Review Automation
AI and ML-based fraud detection software continually assess the incoming data. Regular data processing carried out by this software will help to detect the anomaly in real-time. With this, your organization can comply with the regulatory requirements by screening transactions and customers at regular intervals. Automating the screening and review process mitigates the risk of prohibited transactions.
Deep Insights On User Behavior
Fraud detection software can learn about the trends and patterns of customer behavior. If it detects any disruption in the pattern, it can signal the system administrator to identify if this is a possible case of infiltration.
False Positive Reduction
False declines or false positives can cost your e-Commerce organization a sharp decrease in revenue. Fraud in e-business costs the e-commerce merchants 7.6% of their annual revenue, and false positives alone cost them 2.8% of revenue. It happens when a customer’s legitimate transaction is incorrectly rejected. A fraud detection software should be able to assess each transaction in a broad context, going beyond location and transaction amount to prevent false positives. With this, the declination of legitimate transactions can be kept in control.
Real-Time Operations Tracking And Reporting
Fraud detection software provides the dashboard feature to the organization on which they can organize the customer’s data. Dashboards can also help the customers to monitor their activities, such as the status of their orders, their payment details, location, and channel information.
How To Choose Fraud Detection Software?
Integration And Deployment
You need to ask your software provider about the average deployment time of the fraud detection software solution. You need to check if the software can be deployed easily and the process is hassle-free.
To choose a reliable software provider, do quick research to find out about their client base. This will give you an idea about their expertise and experiential history. You can also ask the previous clients of the concerned service provider about the efficiency of the software and if there are any deployment pitfalls. If possible, take a trial version before you purchase the premium version of the software to ensure that it is compatible with your e-Commerce platform.
For better customer retention, you need to build the trust of your customers on your e-commerce site. Your fraud detection service provider should be able to provide you a solution that will help you to manage the queries of your customers. 24/7 assistance to the customer and reduced response time is important for better customer support.
Some software providers may have fixed subscription plans, while others provide flexible pricing according to the business size and industry, annual sales volume, and other factors. Fraud Detection software providers might also charge you as per the nature of the transaction. Choose a suitable service provider as per your requirements.
Compliance With Security Standards
The policies of your service provider should be compliant with your data security standards. Ask your vendor for the necessary documentation that lists the product’s compliance support policies.
Comprehensiveness And Self-Learning Capability
The versatility of your fraud detection is important, which means it should have the capacity to identify different fraud types. It should be able to process huge data flows to learn about different fraud types and cyber threats.
Key Providers Of Fraud Detection Software
Look for the following features to choose the best key provider of fraud detection software. The software should be able to:
- Comprehensively monitor for probable fraudulent or high-risk activity.
- Calculate the varied transactional risk scores for determining the legitimacy
- Proactively detect illegitimate online transactional behavior.
- Provide alert analysis methods for system administrators
- Ensure compliance with data privacy standards and security protocols.
To counter the eCommerce fraud, your organization can integrate a software solution into the e-Commerce platform. The software will be able to detect illegitimate and high-risk transactions made online and will help to counter the risk in real-time.