Nothing can send a chill down your spine faster than getting to know that your credit card information was stolen. Imagine the scenario where thieves get their hands on your card and go on a shopping extravaganza. You don’t want this image to be true, right? It can take weeks or even months to undo the damage to your finances. Important thing is to know how to prevent internet fraud, which can occur even when your card is with you.
Most people are quite familiar with credit frauds that can happen if you lost your card, but unfortunately, they don’t know how to prevent internet fraud. Well, consumers are unfortunately familiar with the risky retail fraud landscape, but identity thefts are equally dangerous if not more
As reported by Javelin Strategy & Research, identity theft is a type of fraud that time and again leads to illicit card transactions, reached a record high in 2017, with over 16.7 million victims, which is more than 1.3 million more victims than the preceding year.
According to the Consumer Sentinel Network Report, identity theft made up nearly 14 percent of all customer complaints in 2017.
Almost 50% of small businesses fall victim to fraud at some point in their business lifecycle, which costs them an average of $114,000 per occurrence, a survey by Association of Certified Fraud Examiners states.
Other than hacking and phishing, if you accept a fraudulent payment, you could be held financially responsible for the loss. Having to deal with a fraudulent transaction — the chargeback process, and the potential hit to your company’s reputation — is unpleasant, to say the least. Before asking how to prevent internet fraud, you must know what exactly they are. Let’s go through the two major types of online frauds.
Two main Types of Online Fraud:
1. Account takeover: Most online shopping websites provide customers with accounts that store personal information purchase history and financial data. Perpetrators frequently hack into these accounts via phishing schemes. In one of the most general strategies, fraudsters send emails to scam customers into revealing passwords and usernames. Using this information, they log into your customers’ accounts and make unauthorized purchases. Sometimes bots have also been used to obtain confidential information from customers.
2. Identity theft: Though most businesses take a lot of precautions to protect customer data, still, the fraudsters managed to hack into your databases and steal passwords, usernames, credit card numbers and other important personal information. It is important to know how to prevent internet fraud of kind. Unfortunately, most people fail to get the right solution to this problem.
Some of these hackers often sell these credit card numbers to some other scammers, who after that open accounts with e-commerce merchants and utilize the stolen numbers to pay for purchases.
There were 16.7 million victims of identity theft in 2017, according to a study by Javelin Research.
Many banks and other financial bodies have been trying to do their bit to prevent these internet frauds. From providing secure payment gateways to providing toll-free numbers and 24-hour service to deal with the loss of card, they have been trying everything. If you believe that the card was used deceitfully, you may have to sign a statement under oath that you never made the purchases in question. Having said that, it is quite a basic stuff. To prevent those techie hackers, there is a need for something better and more advanced.
What Financial bodies losses in the Chargebacks/ repayments to Consumers!
Any business that sells commodities or services online has to take control of chargebacks. Too many chargebacks can break a business’s bottom line and status among credit card merchants and processors. Same is the case with financial losses. Take the example of a small business owner who purchases a camera for $200. If the business decides to sell the camera at $500, it will make a neat profit of $300. However, if a customer initiates a chargeback during the billing-and-payment circle, the business will lose both the $300 yield and the $200 spent on buying the camera.
Verify commissioned the report found that consumer disputes and chargebacks created $31 billion in financial losses in 2017, with merchants bearing nearly $19 billion of the costs and issuing banks incurring the remaining $12 billion.
In today’s scenario, where customers are losing faith in credit card transactions, there is a crying need for a solution that reinstates the trust among consumers. DizziPay is one solution that makes the online transactions safe and secure by letting you know how to prevent credit card fraud, which benefits both banks as well as users big time. DizziPay can be your best shield against identity thefts. It makes sure that even if hackers gain access to your card details, they won’t be able to misuse it since DizziPay has introduced a unique technology where it is impossible to steal your sensitive information.
What DizziPay brings to the table!
It is even simpler than using your physical card and much safer
- Make easy payments in stores, in apps and on the web.
- Instantaneous payments save time on statistical transactional verification
- Contributes to the environment by putting an end to plastic cards
- Continue building a cashless economy
- Frauds and Risk proof investments
Check out some features of DizziPay:
An Innovative Idea – DizziPay has come up with an Innovative Idea – a totally secure digital payments technology for Banks, consumers, issuers, sub-issuers which supports mobile and online transactions. Its main purpose is to ensure that whenever you make online payments, you make secure and fraud-proof transactions.
Compatible with all existing payment systems/methods – Being compatible with all the existing merchant systems, DizziPay provides every bank account holders with ease to pay anywhere, anytime around the globe. It has come up as an innovative idea that helps its customers to pay like a card, without using the card, through a totally secure interface.
Cashless and cardless – DizziPay is the world’s first solution that allows consumers to pay securely with the card, without owning a card. It is the pioneer in this regard as this unique feature is regarded as a patent-pending technology.
Whether you’re an individual, worried about your finances, or a bank (or financial institution), looking for a safe and secure payment method for your customer and try figuring out -how to prevent internet fraud! DizziPay offers the perfect solution. Why the physical card is taken out of the equation, then there will no card loss, hence, no fraud.
What more? Well, along with being the best answer to the question – ‘how to prevent internet fraud,’ DizziPay also makes a contribution in Go-Green movement by coming with a cardless eco-friendly solution. It gives you one less reason to use plastic in the form of those credit cards.
DizziPay Benefits both consumers and financial Bodies:
Not only the individuals get benefitted by DizziPay, but it also reduces credit losses to financial bodies. For the first time ever, the bank will be informed in advance by the customer that a transaction is going to be made, reducing any need for statistical transactional verification.
DizziPay’s benefits to banks!
Dramatic reduction in security software expenses – A lot of banks’ expenses are incurred on putting all those security software in place. With DizziPay entering the frame, there won’t be a need for adding additional security software and thinking how to prevent credit card fraud, as it won’t let frauds happen it first place.
Reducing any need for statistical transactional verification – Banks will be informed in advance by the customers whenever a transaction is going to be made. This will reduce any need for statistical transactional verification. This will take a lot of unnecessary load off the banks.
Increased income – DizziPay enables customers to do card-less transactions. With non-cardholders becoming customers, banks get the benefits of increased volume, which eventually get converted into income.
Reduced credit losses – Banks don’t want to be in a situation that they face credit losses every now and then. Chargebacks are already making life tough for financial institutes and they can ill-afford to deal with credit losses. DizziPay not only reduces credit losses but also help to reduce the cost of risk management. Well, when there are credit card frauds, there will be no credit loss for banks as well.
Improved trust & credibility among customers – We all know that financial institutes thrive on the various transactions made by the customers. If customers stop making transactions, then these institutes won’t survive. However, a lot of consumers are still quite reluctant to use credit cards as they don’t trust its security. DizziPay gives consumers an assurance that their money is in safe hands. It increases the trust among consumers as they finally know how to prevent credit card fraud. It also encourages them to make payments online.
When more people start trusting digital payments, it increases the customer base. With increased customer base comes increased transactions, which eventually end up providing banks or other financial institutes with a lot of revenue. Well, that’s the bottom line for any financial body, isn’t it? So whenever someone asks you – how to prevent credit card fraud, just give them one name – DizziPay.
Get in touch to know more.