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The eCommerce presents unrivalled possibilities for tapping into markets that are out of the reach of brick-and-mortar types of businesses. Web-based merchants have the world as a market. The other side of the coin is that criminals see the eCommerce as an additional source for gathering sensitive personal information that can be later used for fraudulent transactions. Personal data can be compromised or stolen in a number of different ways, but online merchants can do their part and help protect it from falling into the wrong hands. As a step in this direction and in order to reduce losses resulting from excessive risk exposure, eCommerce merchants must implement internal fraud prevention measures and controls that are designed to their environment’s specifics. A dedicated fraud control department can provide the direction that the organization needs to take to fight fraud. Consider implementing the following measures into your organization:

Establish an official fraud control function. Consider implementing the following procedures when setting up a fraud-control position or department:
Elevate fraud detection and prevention to the highest priority.
Develop day-to-day objectives that promote profitability, such as:
Minimizing the percentage of fraudulent transactions.
Minimizing the affect of fraud-prevention procedures on legitimate sales.
Minimizing fraud-related chargebacks.

Clearly define responsibilities for detecting and reviewing fraudulent transactions.
If yours is a larger organization and you have a separate group that deals with chargebacks, you should promote a close cooperation between the fraud-prevention and chargeback-monitoring groups, as one of the most common causes for chargebacks is fraud.

Monitor fraud-control performance. Your fraud-prevention efforts will become more effective if you track areas like:

Total fraud volumes as a percentage of your total sales.
Fraud recoveries as a percentage of your total fraud.
Speed of reviewing and making decisions on suspicious transactions.
Number of complaints from customers regarding legitimate sales.

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