Since people started using credit cards to pay for products and services, payment security has been a top concern to shoppers and businesses alike. Fraudsters continue coming up with new ways of stealing customers’ data. You can, however, keep your customers safe from malicious people by knowing everything about credit card fraud. Start by getting familiar with how unauthorized parties try to access the personal details of customers so that you find ways to prevent each technique.
Some of the fraud schemes that thieves use include credit card skimming, identity theft, tumbling, refund fraud and direct deposit fraud. Skimming involves the use of a device which records the card data of a customer when making payments then sending this information offline. Credit card skimming often happens in gas stations, kiosk and ATMs. A thief can also make an unauthorized transaction using a customer’s credentials to steal funds.
The cases of identity theft are on the rise. An identity thief is one that obtains social security numbers and payment card details to impersonate a client. Some online businesses are also vulnerable to credit card tumbling which involves generating credit card numbers and testing them until the valid number is revealed. If you run a business with a high turnover, it may be challenging for you to identify fraudsters easily. You should however not take any risks and understand the right strategies that can help you combat fraud.
You can keep credit card users’ information secure through encryption. This ensures that the personal data of customers is unreadable as they make transactions. The system converts data into a secret code which no one can unlock without the use of a decryption key. It prevents payment data from being stored or even transferred. Some businesses also implement the use of tokenization to prevent credit card fraud. This replaces sensitive information with unique tokens such that a thief cannot access payment data without using these tokens.
Two-factor authentication also secures credit card details. A customer has to authenticate their identity before making any purchases. The system needs one to key in a special code sent as a text or email before they make any transaction. EMV cards ensure that your business machines cannot read customers details to prevent people from stealing credit card numbers. As an entrepreneur, you can also invest in systems which provide user access levels. With this, you can authorize some employees to utilize the payment technology and monitor who can access such systems. Ensure that the payment processing technology you use complies with PCI.
The foundation of boosting payment security lies in investing in a secure POS system. Consult Global payment terminal for you to get a system with security features to mitigate the risks of credit card fraud. Your POS system should provide encryption and offer contactless payments while at the same time accepting EMV chips. It should also have data reporting tools that can allow you to keep track of your company’s expenses, profits and any other relevant information.