4 Fraud prevention tips that you must follow this Holiday Season

4 Fraud prevention tips that you must follow this Holiday Season

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The holiday season is around the corner and it is the time of the year when online shopping and more specifically Christmas online shopping is at its peak. Christmas celebration coincides with millions of people using the occasion to make purchases from stores that have designed special sales and product lines for Xmas festival. But despite being a joyous occasion, the holiday season that ranges between Thanksgiving and Christmas is plagued by frequent identity frauds to perform online shopping. These identity frauds are performed by a number of means that can be in the form of account takeover and even by the use of fake identity credentials. Fraud prevention is an important responsibility not only on part of the individual shopper but on the part of businesses as well.

Why Fraud Prevention is Important?

Every year, online shopping spree attracts a large number of scammers and fraudsters that want to earn a quick buck from the frenzy surrounding the Christmas shopping. But interestingly, the increase in fraud attempts is far higher than the increase in transactions performed during Xmas festival.

Christmas online shopping sees people performing 19% more online transactions than yearly average but online frauds rise 22% higher than usual attempts of performing an online fraud during the same period.

Fraud Prevention Tips

Businesses as well as individual shoppers that want to benefit from the amazing deals of Christmas online shopping, fraud prevention tips can be really beneficial.

  1. Avoid Using Public Wi-Fi

There is no easier method than stealing important identity information from devices connected to Public Wi-Fi. So no matter, how tempted you feel to connect to the Wi-Fi of  the shopping mall you are visiting or any other publically available Wi-Fi, never connect your digital devices (either smartphone or tablet) with these virtual connectivity hubs, especially in these festive days when an average crook is more interested in your personal information than your wallet.

  1. Safer Internet Browsing

You might not be too excited about online shopping discounts offered during the holiday season but that does not mean that you are fully safe from scammers and digital identity thieves. So you need to be extra careful in your internet browsing practices. Do not open an email from an address that you do not recognize and even if you find nothing alarming about the email address, refrain from unwantedly clicking on any link in that email, no matter how tempting it feels like.

Same goes for online websites. Never enter any of your personal information on a website that might belong to a genuine business or outlet but lacks necessary security layer. The easiest way to check for that is by looking at the Url of the page. If it starts with https:// then you are safe, otherwise run away.

  1. Secure Your Payments & Plastic Cards

Credit card skimming and ATM hijacking are the oldest tricks for stealing financial information of users. It is important that for an airtight fraud prevention, you remain cautious about using payment gateways. It will be easier to monitor your transaction records if you opt for real-time sign-up alerts and mobile SMS for everytime you perform a purchase using your credit card. Account takeover is surpassing conventional forms of identity theft and best identity theft protection can be availed by doing the simple things right.



  1. Powerful Anti-Fraud Solution

Businesses that are looking to avoid a substantial loss of revenue despite a successful holiday season, should get in touch with fraud protection services. There are many identity verification solutions that can come handy not only for Christmas online shopping but for walk-in customers at multiple retail outlets. Mind you that online ID verification and best identity theft protection is not just needed by businesses offering retail items for sale during the holiday season. As described in the above infographic, industries as diverse as cryptocurrency and financial services experience a larger number of identity theft attempts during the holiday season.

Shufti Pro is a reliable option for businesses that want the support of a reliable fraud protection service, this holiday season. As a universally accessible anti-fraud solution, Shufti Pro can perform fraud detection with the help of its various online identity verification services such as ID verification, Face verification, Address Verification, and even credit card verification.

Online ID verification from Shufti Pro not only supports official ID cards but can also verify a person’s identity with the help of driving licenses as well as passports. Shufti Pro is available in 225+ countries and supports 150+ languages, making it the most appropriate fraud fighter for businesses around the globe. Real-Time verification results are forwarded to end-users as well as Shufti Pro customers to create a relationship of trust between businesses and consumers.

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Fraud Prevention through Secure Payment Processes

Fraud Prevention through Secure Payment Processes

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Here’s a question, why do people always say things like  “the good days”? The fact is a number of people find that new technology and game changing ideas bring new problems, issues and dilemmas. In the good ol’ days you had to sweat more to get work done but it was simple and straightforward. Same is the case with fraud prevention and identity management.

To put this into perspective let us refer to the story of Jack, a website owner who has about had it with chargebacks due to the use of stolen credit cards. He runs a successful hardware store but he saw that some of his customers were preferring the online method where they could get the things delivered to their doorstep. He had an e-commerce website made to cater to the people who preferred to order online. Everything went smooth at first as he had included most of the safeguards such as a secure connection and the proper requirements and payment gateways to collect the payment from the customer. But when he started getting chargebacks that’s when out of frustration he referred to the statement above. He referenced the fact that at the store he had a couple of shoplifters which he caught eventually but never a payment fraud. He said he accepted cards, he could verify the signature on the back and sometimes the cards had pictures and he could match those. He even mentioned that once he found someone suspicious and politely asked them to pay in cash since the card machine was not working. He says with everything online what can one do? The person who used the stolen card gave a fake address and contact number. In this case how can a website owner secure themselves against a credit card scam?

Are Secure Payment Processes the Best Tool for Fraud Prevention?

In the scenario above, when we look at the argument, it seems that, yes, the old times were less complicated. New tech has brought its own set of problems, but with that, solutions for those problems were also found. The answer came in the form of third-party verifiers that vouched to provide secure payment processes. As mentioned in the scenario the website owner could not verify if the card actually belonged to the person who was using it. What if that were possible in the online world? The answer is yes, it is possible; these online verifiers use the World Wide Web, the customer’s webcam or smartphone camera and verify the details on the card by asking for proof of identity such as an ID card or passport. They match the names, the picture on the ID card/passport to the actual person’s face. If they all match up it Okays the transaction and allows it to proceed.

If you look at it from the perspective of the website owner this is just what the doctor ordered — a fraud prevention system. This is the solution to Jack’s online problem, besides that he also has a proof of purchase to dispute any false chargebacks as the verification service providers also give pictures of the verification or even a video of the entire process with the customer.

Can Secure Payment Processes Counter Money Laundering?

Another aspect that is equally important is that of money laundering. The governments of the world as well as all financial regulatory bodies don’t take lightly to money laundering. If a company, business or financial institution is found guilty of direct money laundering or even aiding and abetting then they are in a lot of trouble. Such businesses or financial institutions suffer heavy fines and even be closed down with prison-time for the owner depending on the severity of the money laundering case. Some companies that provide Secure Payment Processes also provide services that do background checks as well as the regular identity checks. Their system does a thorough check of databases of global watch-lists. They hold information regarding known and suspected money laundering individuals, groups, companies, etc. Known as a digital AML (Anti-money Laundering) service. Having onboard a company that provides both services — online identity verification and anti-money laundering — is truly a powerful fraud prevention system.

Jack Knows What He Needs to Do Now, but How to Choose the Right Company?

When Jack found about the companies that can offer a solution to his chargeback woes, he couldn’t be a happier man. When he went online, that’s when he started scratching his head seeing all the companies out there. Not knowing what things to look for can make choosing a good company a confusing and tedious task. Let us see what to look for in a good company that provides Secure Payment Processes.  The first thing to look for is speed and ease of use. If a process is too complex and takes too long, then people just lose interest that causes loss to the business. The best ID verifying companies have verification times in the seconds. Another thing is that most of the providers are powered by an advanced AI that does automated checks of the documents as well as picture and face matching. The better providers go a step further they add HI (Human Intelligence) to the AI. Live people check the results of the AI for false positives. The entire process by both AI and HI takes less than a minute. The features and options that a fraud prevention provider gives should be scrutinised as this makes it easier to judge if they are giving good value for money or not. Good providers allow for online as well as offline checking so that if a client wishes to offer their customers the ease of offline submission of documents and pictures they can do so. Also, if the provider offers digital AML services then that is definitely the cherry on top. The last but the most important thing to look for is if the company is compliant with the latest industry standards and policies. As partnering with non-compliant companies can result in heavy fines and other penalties for both the digital AML service provider as well as the company that has hired them. An example is the GDPR policy for companies that are handling the data of European citizens.

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