Ecommerce fraud can be prevented. ClearSale has numerous success stories pointing to how effective a fraud prevention and protection strategy can be.
Here are some best practices:
For luxury goods ecommerce businesses who are looking for ways to prevent fraud, the best starting place is to know which segments are higher risk. For example, jewelry and apparel are both considered high risk and should be subject to more scrutiny.
|Alcohol & Pharmaceutical Drugs||High|
|Phones & Electronics||High|
|Watches / Glasses||High|
|Hardware / Home Improvement||Medium|
|Apparel - Ticket Above $200||Medium|
|Mass Merchant - General business selling in multiple categories||Medium|
|Toys & Hobbies||Medium|
|Travel & Tourism||Medium|
|Apparel - Ticket Below $200||Low|
|Books / Music / Video||Low|
|Children & Baby Products||Low|
|Flowers / Gifts||Low|
|Health / Beauty||Low|
Luxury ecommerce retailers should also review their current transaction approval rates to get a clear picture of how well they’re balancing risk with revenue.
Luxury consumers are more likely to travel, have multiple homes, and vacation for longer periods of time.
They also expect and are accustomed to over-the-top service, so contacting them directly to confirm addresses to protect them from fraud will most likely be a well-received communication.
A friendly confirmation check-in can be combined with a customer satisfaction inquiry to create even more affinity for a brand.
Ecommerce platforms have the best intentions to keep an online merchant protected from fraud, but blindly turning on filters as if every customer and every transaction is the same is a recipe for false declines.
Be very cautious of automatic filters, especially when applying multiple filters, as they can either cancel each other out or double up to the point of declining good orders.
In general, luxury goods transactions should have some level of manual review for any flagged orders.
The most effective way to prevent fraud is to work with an expert partner that has the expertise and experience to identify, evaluate, and prevent fraud from happening. For luxury goods merchants, that partner should have a global view of fraud and understand the most current tactics used by fraudsters.