Five online payments fraud prevention tips from Silicon Valley Bank to help companies limit fraud losses, minimize costs and improve customer satisfaction and confidence.

1. Stop Payment Fraud
from Eating Your
E-commerce Profits

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… but there’s a persistent
and growing threat to
every business that
accepts payments online.
You’re working hard to
make your online commerce
business profitable …
!

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Why?
• The move to EMV chip cards has made online
an easier target than brick-and-mortarstores.
• Criminals have easy access to potential victims
all around the globe.
The threat:
Credit-card fraudsters
love the online commerce
business, too.

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The overwhelming share of losses
to merchants from credit card fraud
come from card-not-present (CNP)
transactions, and the problem is
getting worse.
— Card industry newsletter The Nilson Report, October 2016

5. 5
If you take credit card
payments online, you need a
proactive plan to protect your
business and its reputation.
Start with these
five steps.

6. 6
#1
Know the difference
between data security and
fraud prevention.

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 Good data security practices
protect your customers’
information.
 Good fraud prevention
tactics stop bad transactions
that cost you money.
Good data security:
When you comply with PCI
DSS, the Payment Card
Industry Data Security
Standard, you’re taking care
that consumers’ personal
information isn’t vulnerable to
being stolen.
Good fraud prevention:
Identifies and stops
transactions that attempt to
use payment card data that
was already stolen
elsewhere.

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#2
Put anti-fraud tools to work.

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Be sure you have the basics:
 Use an address verification
system (AVS).
 Require customers to enter
their three- or four-digit card
security code.
Then bring in more advanced
tactics:
 Employ automated
transactional risk scoring,
categorizing, and resolution
and post-purchase transaction
management.
Keep your
tools sharp!
• Continually review and
adjust your fraud rules and
parameters.
• Fraudsters are always
tweaking their tactics, so
don’t have a one-and-done
mentality.

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#3
Know what “normal” looks
like so you can spot
deviations.

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For example, look out for
these mismatches:
• Different billing and
shipping addresses when
expedited shipping is
requested.
• Different geographic
locations for IP address and
credit card billing address.
Analyze
transaction data
during the
purchase flow to
flag deviations
from the norm.

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#4
Train your employees to
spot fraud.

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 Educate your employees to
understand the risks of CNP
transactions.
 Develop internal practices
and policies for monitoring.
 Train your team to use
anti-fraud tools and tactics.
But remember, fraud can be
an inside job, so:
• Use real-time screening
that draws on payment
information and anti-fraud
intelligence from external
sources.
• Create a process that
requires another level of
approval for flagged
transactions.

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#5
Leverage the expertise of
your payment processor
and other service providers.

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You’re not alone
in the fight
against fraud!
 Talk to your payment
processor and bank – they
can share best practices.
 Connect to resources such as
fraud prevention services and
software.
Next steps:
• Commit to an ongoing
anti-fraud effort.
• Stay up-to-date on
e-commerce fraud trends.
• Make your prevention
strategy adaptive and
appropriate to your
business.

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Your proactive approach can
help limit fraud losses,
minimize costs and improve
customer satisfaction and
confidence – all key drivers
of e-commerce profitability.

17. ©2017 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary
of SVB Financial Group (Nasdaq: SIVB). SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB
Financial Group, used under license. B-16-15178 Rev. 03-16-17.
SVB’s Global Treasury and Payments Advisors can share more
details about supplier enablement.
Need more information?
Check out SVB’s Payments Trends and Insights page on SVB.com.