Important Account Takeover Prevention Measures All Businesses Need To Take |
Posted: October 29, 2020 |
Account takeover fraud is a problem for both online shoppers and businesses. Account takeover instances increase during the holiday shopping seasons when sales volumes hit record levels. So, the need to invest in efficient account takeover prevention tools has never been more urgent for online vendors and merchants. Understanding Account Takeover Fraud Account takeover fraud takes place when hackers take over a user’s online accounts. These hackers target customers who are unaware of cybersecurity prevention measures. After taking over the account, scammers steal customer data so they can commit other cybercrimes. For instance, a fraudster can hack an online vendor’s account, access all customer data and use the data to make purchases. After receiving the ordered products, the criminal reports a chargeback. Chargebacks are refund requests. If a user does not receive a product or service from an online vendor as expected, s/he can report a chargeback. However, chargebacks triggered by account takeover fraud result in massive losses for vendors because they are forced to return the digital payment they received and they lose the product they delivered. Account takeover prevention is important for businesses because excessive chargeback requests can ruin their reputation. If the online vendor conducts business on a third-party sellers’ platform, the platform may blacklist him. The same goes for issuing banks because they punish vendors by noting that they have poor security records. How Can Vendors Prevent Account Takeover Fraud? Online merchants need to step up their cybersecurity practices to combat account takeover fraud, Some helpful measures include: Client Education Online sellers need to inform their clients about the risks of account takeover fraud. Here are some guidelines that businesses should recommend to their clients.
Invest in Latest Security Tools There are numerous account takeover prevention tools in the market, and online merchants should take advantage of them because they can:
These tools help businesses maintain their reputation as a safe place for customers to do business. All online shoppers deserve security and keeping customer accounts safe is every online merchant’s responsibility.
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