1. Overly strict fraud filter settings
Given how prevalent fraud is today, many small business download free usa email database prefer to adopt the strictest security measures. This may seem like a good idea, resulting in fewer fraudulent sales, but unfortunately it will also result in fewer sales of any kind.
Fraud prevention systems that are too strict can lead to delays in shipping orders, which can frustrate customers and cause them to abandon their purchases. Overly strict fraud filter settings can also produce a high rate of false rejections, where legitimate orders are rejected because the fraud system detects something suspicious in the transaction.
The moral of the story? Setting up a system that reduces fraudulent transactions online is not so different from developing a healthy diet: everything in moderation. Adjust your fraud filters to find the right balance between transaction security and convenience for your customers.
2. Overreacting to Red Flags
Along these same lines, another common mistake occurs when small business owners place too much weight on one or two red flags without carefully analyzing the bigger picture. To be sure of these red flags, it’s essential to pay attention to things like high volume of orders, different shipping addresses, and an increase in international orders. But there are times when these “red flags” can be present even in legitimate transactions.
In other words, not every package sent to a PO Box is a sign of fraud. It could simply mean that you have a potential red flag that should be analyzed in conjunction with the other transaction data to determine if something is actually wrong.
The key is to always be alert to how these individual factors could indicate fraud, but don’t dismiss them every time they appear without exploring other related factors and conditions.
3. Domestic Preference
Statistics support the need for a healthy amount of suspicion when analyzing international transactions. Despite this, some small business owners assume that as long as all of their sales are domestic, they won’t be victims of fraudulent transactions.
That’s where the mistake lies!
Many cyberattacks can also occur domestically, so don’t fall into the trap of oversimplifying the true risk. Not all domestic sales are good, and not all international sales are bad.
Continue to pay close attention to irregularities in your international shipments, but also pay attention to irregularities in your domestic shipments.