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Your Dropship Business: How to Avoid Internet Fraud

 
dropship avoid fraudWhile ecommerce is certainly a wonderful thing for your dropship business, the sad truth is that internet fraud exists and you should be taking steps to protect yourself from being a victim.

According to Javelin Research, ecommerce sales are continuing to experience substantial growth, with a 5.5% increase last year and projected growth of almost 13% in 2010.

This is great news for any ecommerce entrepreneur with an online dropship business or other internet endeavor!


However, along with the increased consumers will come an increase in scammers. So, here are a few tips to help you avoid internet fraud:

  • Before accepting credit card payments, be sure to have a program in place to check for fraudulent use of credit cards such as AVS (Address Verification Service) or perhaps CVV2 (Card Verification Value 2) which will help decrease the risk of fraud. Once the processor has approved the transaction, the gateway should then send an email to the buyer that will not only confirm the sale but also verify the email address.  The principle behind using AVS is that in most cases, a scammer or someone attempting to use a stolen credit card will not have access to the legitimate card owner’s address. This helps tremendously in weeding out fraudulent credit card use!

  • This may sound like a no-brainer, but be especially wary and don’t fall for a phishing attempt to gather financial data! If a regular consumer falls prey to a phisher and hands over personal and financial information, it will affect just that one person. But if you, an ecommerce merchant, are fooled by a phishing attempt---all of your customers will have their information compromised as well. This would be a blow to your online reputation that your dropship business might never be able to recover from!

  • Another very obvious point of entry for many hackers and scammers is through the use of a Trojan horse or virus. If you have an ecommerce website, you must be hyper vigilant about safety and security! Make sure to keep your protection up-to-date and functioning properly. Bear in mind that if your website is exposed to a virus or malicious software, all of your data will be compromised and your customers' information at risk! Avoid this by having great anti-virus and malicious software protection!
 
Staying safe from internet fraud is important to your dropship business!


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