How to Prevent Fraud from Risking Your E-commerce Business

In the world of e-commerce today, we can't run from facing the possibility of fraud issues in our business. Fraud is a huge problem to a business.

Every year, businesses all over the world losing billions of dollars to employee’s fraud. Same goes to the small business sometimes which are more likely facing the risk due to lack of awareness or lack of security.

Here are some of the ways to prevent fraud in your e-commerce business:

1. Implement internal controls to reduce fraud risk

Most of the small businesses will depend on one person to settle the transaction activities such as process of payment and invoices, bank deposits, handling cash and reconcile bank statements. This can cause trouble to the company. Implementing internal controls can reduce fraud risks in your business.

Merchants can implement a system that spreads or possibly rotates the financial duties of the business among few more employees. Keep all the bank checks of the company in a secure place and review the bank statement every month.

Having a bank mail the company’s statements to your home address will be a good idea. It is to make sure you know what happen in your company and receive it before anyone else.

2. Get to know your employees and live the corporate culture

When identify the potential fraud risk, observing and listening to employees can help you prevent the problem. You need to know what are the type of potential fraud involved.

It is essential for the company’s management to be involved with the employees. Take time to get to know your on employees. Changes in attitude often can give you a clue to the risk.

This can reveal the internal issues or problem faced by your company. Live the corporate culture also one of the good idea to prevent fraud. Having a positive workplace or environment can lead to prevent fraud and theft from happen. There should be a clear organizational structure, written procedures and policies and a fair employment practices in the company.

Create an open-door policy in the company to give employees an open line of communication with your management. This can be a great fraud prevention system for your company.

3. Choose a secure ecommerce platform

When getting yourself involved in e-commerce arena, it is important for you to have a secure e-commerce platform. Having a secure platform can avoid of facing fraud in e-commerce.

Merchants can put their e-commerce site on a platform that use a sophisticated object-oriented programming language. Make sure to have a SSL certificate for your e-commerce platform in order to have a secure website.

Not only that, you also have to make sure that your payment processor is PCI-DSS compliant and ease your work to track any payment activities happening in your company.

According to Shawn Hess, the software development manager from VoIP Supply, using one secure platform is much safer than using plenty of platforms.

Conclusion

When involving fraud activities, the person who is willing to commit the fraud are not choosy. This risk can happen in either big or small companies across various industries and any locations.

Knowing other ways to prevent fraud is very important to the company. Make a proper plan too so you can prevent the fraud from disturbing your company.