Business fraud is often hidden from plain sight. But the longer it goes on, the more damage it will do. Here are four important factors that will help you prevent and uncover business fraud.

  1. Transaction processing systems: Review fraud settings
    Most modern payment systems offer fraud protection. Either built-in or through a second- or third-party provider. It’s a good idea to ensure that the protection is set to its highest level. By enabling the Address Verification System (AVS), card transactions will only be allowed if the provided address matches whatever the card-issuer has on file.
  2. Being in the know: Avoid having your business targeted
    Fraudsters often target specific businesses. While car dealerships might be a target for confidence tricksters and insurance fraud, online businesses often have to worry more about stolen credit cards and hackers. By being aware of your specific risks, you can deal with many of the root causes of fraud whether it means being less gullible or making sure software it up to date.
  3. Transaction codes: Follow the numbers
    Chargebacks, refunds and denied transactions usually have specific transaction codes. By keeping an eye on these codes, you’ll always be one step ahead of what’s happening. It’s usually enough just to check on them once in a while to get a retrospective bird’s eye view.
  4. Trust the providers: Utilize their tools and knowledge
    Transaction providers and merchant services spent a lot of time simply staying ahead of things. They are often well aware of risk factors and which businesses are being targeted at the moment. Follow their advice and don’t be afraid to reach out for tips.