If you own an online business, the odds are high that you will contend with credit card theft on a regular basis. Although this negative aspect of accepting credit cards is something that most business owners have come to begrudgingly accept, there are steps that you can take to protect yourself from fraud.
For example, the global identity verification service Trulioo offers an easy method for stopping credit card theft in its tracks. With all of the money that is at stake, not to mention your company’s reputation, it is more vital now than ever before to become fully aware of how much danger stolen credit cards can represent for your bottom line.
The Staggering Cost of Credit Card Theft
When most people contemplate credit card theft, they focus primarily on the personal risk that each consumer carries. In the past, many credit card users were left without protection, and this could lead to devastating consequences. This helped businesses and banks mitigate their losses, but it was not a good way to keep consumers interested in acquiring new lines of credit.
Therefore, consumer protection programs were put in place, and individuals are now only responsible for less than 1 percent of the money that is wasted on theft. This minimal percentage still adds up to $4.8 billion per year, but things are much worse for business owners who are left dealing with a combined annual loss of $190 billion.
Additional Complications Associated with Credit Card Theft
Although your company had nothing to do with someone purchasing items with a stolen credit card, you are still likely to end up dealing with some ramifications that go beyond losing money. For example, the consumer whose credit card information was stolen is not going to be pleased that someone else was able to make a fraudulent transaction from your online store.
Additionally, if the consumer does not have the proper credit card protection, they may end up blaming you for their loss. This could escalate quickly now that so many people air their grievances online, and it will almost certainly result in the loss of at least a few customers. Due to this, it always makes the most sense to do whatever you can to prevent fraud from happening in the first place.
Utilizing Identity Protection
As a business owner, you have probably longed for a way to instantly verify someone’s identity online. The good news is that this is now a service that is offered by Trulioo. The company that first made a name for itself in 2009 as a way for dating sites to verify the identity of their users has since expanded through investor funding. The first step of this process involved identifying spoofed social media accounts.
More recently, the company has launched their online electronic identity verification service to help prevent fraud. This global gateway uses a data matrix to access more than 140 worldwide verification sources almost instantly from your desktop. There is no need to download any software, and you can join major companies such as PayPal, eBay and Square in helping to combat fraud.
The expenses associated with credit card fraud encompass money, time and your company’s reputation. Preventing the majority of these issues from happening will increase customer satisfaction and enable your employee to put their talents to work in better areas than dealing with the fallout from a fraudulent transaction. Fortunately, Trulioo makes it easy to significantly reduce your annual losses that are tied into credit card theft.