Top Strategies Your Company Can Use to Combat First Payment Default Fraud

Online payment fraud remains one of the most common problems that a company has to deal with if it wants to grow its business on the Internet. For this reason, any entrepreneur needs to understand the risks and the best ways to combat them. For example, the first payment default is a grave problem that can cause massive damage to your business if safety systems are not in place.

In this article, you will find the top strategies for minimizing or even eliminating all the fraud attempts your business will encounter. All you have to do is check every option, find out which ones fit your business best, and implement them as quickly as possible. Doing so will ensure that your business’s growth won’t be affected by these situations, and you won’t have to worry about them all the time.

You Should Check Every Address to Combat First Payment Default Fraud

One standard method of detecting fraud attempts is verifying the delivery address. Doing so will help you determine if the address is valid or if it doesn’t match the order. Many criminals also use this method to make fraud successful. Keep in mind that there are many methods, such as using neighboring addresses, to avoid detection of criminal activities. Your company doesn’t want to be part of that system, so the best way is to check the addresses beforehand to prevent first payment default fraud.

There are two methods for achieving this. First, you can do everything manually. Luckily, with the help of Google, you won’t need to spend a lot of time and effort. However, if your company receives too many orders, you may want to consider the second option. That is, you should look for specialized services that will provide this service and others that will help your business prevent fraud.

You can find these types of specialized companies online for this purpose. Hey, we have the best professionals and the best tools available to help them accomplish these tasks quickly. Address verification will give you enough time to prevent any fraud attempts that may be detected.

An Identity Verification Process Is Ideal to Prevent First Payment Default Fraud

Another method or service that you can consider to prevent first payment default fraud is identity verification. This method is a little more complex because you will need to have several types of information verified before making a decision. The pieces of information and the method used for verification can be found below:

• Billing and shipping addresses. The first part of this process is to check the billing and shipping addresses. Ideally, they will be the same, so you can be sure that the person is real and the chances of fraud are low. However, there are many cases where real customers will have different addresses, so this is not enough to determine whether a purchase is accurate or a fraud attempt. You will need to consider other factors as well. • Phone number. The phone number used for the purchase is another factor that you will need to consider. You can check if it is accurate if you use the right services, if they are accessible, and if the person making the purchase is the same as the one using the phone number. This process can also be done through a message verification. • Email address. A similar method can be used for email verification. You can send a confirmation email to ensure that an actual human made the purchase and that the address used is valid. By combining all these verification methods, you can minimize fraud attempts that use false or stolen information.

Verifying the IP Address Can Also Help You Prevent Many Fraud Attempts

A common tactic in this type of fraud is to hide the location of the purchase by hiding the IP. Many methods can achieve this purpose, the most common ones being VPNs or cloud-based servers. A fraud attempt can also be made through a proxy, which has the same effect. For this reason, an IP verification process can also be used to detect suspicious purchases. It is essential to consider the fact that many people are using VPNs and other methods nowadays to keep their information as private as possible. So, you should determine the validity of a purchase based on this factor alone. It is best used together with other methods. The more factors you have to make a decision, the more accurate it will be and the lower the chances that you will block a genuine purchase. Even though fraud prevention is an essential part of any online business, thorough measures must be taken to avoid losses caused by making wrong assumptions. You don’t want to lose clients because of a faulty system, so you must seek the best possible fraud prevention solutions.

How Can Phone Verification Solutions Help You Prevent Fraud

Through the development of technology and access to more information, it is possible to increase the importance and effectiveness of some methods. For example, phone number verification can not only be used to determine the buyer's identity but also to determine whether a purchase is suspicious.

With the right tools, you can check a phone number's activity history, which can give you an idea about its validity. For example, many fraud attempts use new numbers regularly to avoid detection. However, if the activity history is blank, then you can determine that a purchase is suspicious and go through other verification steps to determine if that’s true or if the client and purchase are valid.

All the methods mentioned above are some of the most effective ones right now. However, it is vital to consider the continuous development of both fraud methods and detection alternatives. For this reason, you need to find a reliable partner that can focus on and cover all your security needs when it comes to online payments. Through a simple Google search and some thorough research, you can easily find the best solutions currently available.