Why is it so important to protect your customers’ personal information while shopping online? The answer is simple—a stolen card can result in significant time and inconvenience for customers who have to remove fraudulent charges and potentially clean up their credit report or deal with credit delays.
The Many Threats to Online Customers
Information Age describes the most common types of fraud that threaten online merchants and their customers. While there are multiple ways in which online shopping poses threats to consumers, these three are the most concerning, all of which access targeted individuals’ credit card details:
1. Identity Theft: Thieves use someone else’s identity to make purchases using that individual’s banking information or credit cards.
2. Phishing. Phishers use fake messages, through websites, text messages and emails to acquire an individual’s personal information.
3. Account Theft. Fraudsters gain access to an individual’s password and use it to take over an existing online shopping or banking account.
During this past holiday season, Forbes reported in a survey of 125 retailers that online fraud attempts are projected to rise 43% this year over last. Your customers are at risk! They are demonstrating their concern when it comes to giving their private information online and over the phone.
How to Pay Online While Staying Safe
The method of payment a customer uses makes a difference in the level of risk. Fortunately, online merchants are beginning to offer additional online payment options. The Balance offers insight into the most common payment methods and the pros and cons of each.
Credit cards, the most common option, generally offer strong fraud protection and allow for charges to be easily reversed since funds do not immediately come out of the cardholder’s account. However, if a credit card or credit card number is stolen, the payee needs to get an entirely new card and number, which is inconvenient and often time-consuming, especially in updating auto-debits and stored numbers. Credit cards should only be used when payees are confident that the site is reputable and secure.
Unlike credit cards, debit cards pull funds directly from the payee’s checking account. If the card is used without the cardholder’s knowledge, the account can be drained very quickly. It can take days to report suspicious activity and even longer to receive a reimbursement for stolen funds. Accounts tied to debit cards should be regularly monitored to avoid too much time passing between the fraudulent activity and reporting it.
PayPal & Google Wallet
Finally, third-party payment services like PayPal and Google Wallet are quickly increasing in popularity. These options offer payees added security because they are not required to directly share credit or debit card information.These accounts can be easily frozen and banned by the merchant if the payee regularly disputes charges.
As these options have their respective costs, risks and benefits, it is up to the consumer to determine the most appropriate.
When your contact center takes payments over the phone, you run the risk of fraudsters hacking your customers’ data from your agents and making your organization more vulnerable to breach. SecureCall allows your customers to provide their payment details using the keypad on their phone or through an SMS interface. Your agents remain on the line, but never see or hear these details, denying fraudsters the opportunity to hack details from your agents. SecureCall is easy to deploy, secure, and cost-effective, while reducing risks to your customers and contact center.
See SecureCall in action in this short video. If SecureCall might be a fit for your organization, contact us today for a full demo. Protect your customers’ information while protecting their trust in your organization.