4 Ways to Protect Your Business From Counterfeit Credit Cards
In this day and age, cash is no longer king. As e-commerce and alternative payments continue to rise in popularity, more and more people are swapping out legal tender for cashless options. One of the most popular ways to pay besides cash is through credit cards. Unfortunately, many businesses today are at a high risk of experiencing credit card fraud, especially since fraud activity is currently at an all-time high. According to a recent report, businesses in the United States have collectively experienced $11 billion worth of losses due to credit card fraud by the end of 2020.
To protect your business, it’s important to understand the different types of credit card fraud. One of the most prevalent methods fraudsters employ today are counterfeit cards. These are fake cards that contain another person’s details and are created by skimming real cards using a magnetic swipe device. In this post, we highlight four ways you can protect your businesses from counterfeit credit cards.
Upgrade to EMV
A straightforward way to safeguard your business from in-store counterfeit fraud is by upgrading to EMV technology. EMVs utilize chip cards that contain secure keys, which then generate cryptographic data per transaction. EMVs are more theft-resistant than magnetic stripes as every transaction produces encrypted one-time codes. In fact, Visa reported in 2018 that EMV technology has reduced counterfeit payment fraud losses by up to 80%. Aside from providing your business with security from counterfeit credit cards, EMVs can also reduce business liability losses connected to fraud.
Get a UV counterfeit detector
Another way to thwart counterfeit credit cards is by getting a UV counterfeit detector for your brick-and-mortar store. This device uses UV lights in order to reveal the security features embedded on credit cards that are not visible to the naked eye. A UV counterfeit detector can prevent counterfeit credit card transactions before a card is swiped through your POS terminal. UV counterfeit detectors are also remarkably affordable and can be easily installed, so you have no excuse for not having this device inside your store.
Stay on top of your business accounts
In the event that your business falls victim to a counterfeit credit card scam, you should be ready to comply with the legal and procedural obligations that may be needed from you by the credit card provider and law enforcement agency. To avoid any chargeback or refund delays, be sure to stay on top of your business accounts by hiring an accountant. You can either use an established accounting firm or hire a freelance accountant. If hiring a freelance accountant, look for a professional with a master’s degree in accounting, as they will have been taught the latest trends in financial statement analysis, financial reporting, and accounting research and communications.
All of these are essential for protecting a business against fraudsters and cybercriminals. In addition to having the necessary know-how to masterfully organize your business accounts, an accountant with a master’s degree will have likely specialized in forensic accounting, which can reveal accounting lapses that have been caused by counterfeit credit cards.
Employ third-party payment technology services
To ensure that your business is thoroughly protected from counterfeit credit cards, you should consider partnering up with third-party payment technology service providers. They can provide your business with POS solutions, make sure that your business is PCI compliant, and provide you with the best practices to keep fraudsters at bay. If you’re interested in teaming up with a third-party payment technology service provider, be sure to contact us today!
Written exclusively for Reddepayments.com
by Alice Cohen
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