Online fraudulent behavior costs businesses dearly. The incidences have only increased over the years, and studies have revealed that globally, about $4 trillion of revenue is lost to fraudulent practices on E-commerce websites annually. The behavior is common not only among the independent online websites but also on those that depend on E-commerce platforms such as Magento. Magento development services, therefore, now more than ever, need to be inclined towards ensuring security and combating online frauds.
Magento is the leader in the industry when it comes to E-commerce web application development. The open-source innovation platform is a trusted and established one in the E-commerce industry. Recently, recognizing the need for enhanced security of transactions over its platform, Magento teamed up with Signifyd, revealing that the latter's machine learning and financial protection is now natively available in Magento E-commerce platform's latest version.
Signifyd's machine learning algorithm helps users determine within milliseconds if an order is legitimate or fraudulent by searching and analyzing a huge database from 5,000+ merchants and data points from third-party integrations with data providers. This verified dataset of fraudulent orders allows the platform to approve and reject orders based on several factors. The process was otherwise impossible for merchants to carry on at their end.
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Signifyd is a SaaS-based enterprise fraud detection technology solution that is used specifically for E-commerce stores. The platform provides Guaranteed Fraud Protection by eliminating the malicious buyers that merchants would not like to entertain. The move is also seen as a respite against the growing issue of “false declines”, where the orders are turned down for the fear that they are fraudulent when actually they were placed by legitimate customers. This loss is more than the total cost of the orders placed because the cost of losing all these legitimate customers for life cannot be calculated.
Magento issued statements saying that the integration will help their merchants improve the customer experiences and will allow them to thrive in the E-commerce market.
While Magento has upscaled at its end, there are some steps that Magento E-commerce store operators and businesses can take to remain fraud-proof.
The fraud prevention strategy you employ should not be too intrusive on your E-commerce platform to shoo away your reliable and long-term customers. To prevent this from happening, you can focus more on the customers that have begun to recur on your website for their products and services requirements. The fraud protection strategy should not frustrate your legitimate customers. Use Magento Analytics to identify your best customers and grow your sales with them. The tool helps you map your customers' spending patterns, track their order history, and measure the overall data for insights.
When you plan on becoming a successful E-commerce platform, you need to integrate technology at every step. A number of software applications can help you track down and predict fraudulent transactions with almost zero false alarm rates. Using technology to win this fight against frauds will help you become invincible. Tokenizing card data, building a customer database for reference, flagging suspected cards, assigning fraud scores to each customer- are just some steps you can take to ensure safety and growth in your business.
When you are trying to run a business, it is meaningless to do everything on your own. Hire an expert to keep track of the security issues, and they will help you maintain transaction safety.
E-commerce frauds are on the rise, and these are some ways in which they can be tackled on the Magento development platform.