Monitor transactions and reconcile your bank accounts daily.
Nobody knows your business as well as you do. You know your biggest spenders and their buying patterns. Monitor your accounts and transactions looking for any red flags, such as inconsistent billing and shipping information, as well as the physical location of your customers — there are tools that trace customers’ IP addresses and alert you to those from countries known as a base for fraudsters.
Consider setting limits.
Using your unique knowledge of your business, set limits for the number of purchases and total dollar value you’ll accept from one account in a single day. It can help keep your exposure to a minimum should fraud occur.
Use the address verification system (AVS).
AVS compares the numeric parts of the billing address stored within a credit card to the address on file at the credit card company. This is a fraud tool included in most payment processing solutions, but check with your payment processor to be sure it’s supported.
Require the card verification value (CVV).
You’re familiar with this three-digit or four digit security code printed on credit cards. What you might not know is that PCI rules prevent you from storing the CVV along with the credit card number and card owner’s name. (That’s why it’s so effective – it’s virtually impossible for fraudsters to get it unless they’ve stolen the physical credit card.) Most processors include a tool to require CVV as part of their checkout templates. Use it.
Get tougher with password requirements.
Hackers employ sophisticated programs that can run through all the permutations of a password. It won’t take them long to crack a four digit, alpha-numeric password (such as, “abcd”). Best practices these days call for (at least) an eight-digit alpha-numeric password that requires at least one capitalization and one special character (for example, “P0r$che9!!”). Your customers might grumble, but it’s better safe than hacked.
Keep your platforms and software up to date.
Make sure you’re running the latest version of your operating system (OS), as OS providers continually update their software with security patches to protect you from newly discovered vulnerabilities, as well as the latest viruses and malware.