Five Ways to Protect Your Business from Mobile Payment Fraud

Most people expect their mobile devices to do everything they need – from watching television and ordering food to making purchases online or in person. If your business accepts mobile payments in your store or online through an app or website, there are ways to reduce your chance of becoming a victim of mobile payment fraud.

1. Use secure a Wi-Fi network. One of the most effective ways to keep your data safe from intrusion is to use a secure Wi-Fi network. And, if you encrypt your network, any information taken will be useless. Talk to your computer expert (if it’s not you) to build a strong password for your router and a unique SSID name for your wireless network. Additionally, turn on the most recent and secure encryption within your router.
2. Build-in biometric detection. Today’s devices come with many different biometric features (fingerprint scanning and voice or facial recognition) to confirm a person’s identity and deter fraudsters from using someone else’s phone to make purchases. Of course, not every customer uses the latest device. To protect any purchases made through your app, install biometric feature detection software to weed out fraudulent purchases.
3. Verify your customer’s identity. Implement a two-factor authentication method for all mobile and online purchases to ensure your customers are who they say they are. This is where you send a verification code to the customer’s email address or phone number (via text or call) associated with the account. The customer must then use the code provided to complete the transaction.
4. Require a CVV code. When your customers use a credit or debit card to make mobile transactions, require them to use the CVV (or three-digit) code on the back of the card. The use of the CVV code will reduce your chances of “card not present” fraud as the customer must have access to the physical card to complete the transaction.
5. Use browser detection for online purchases. If your business accepts mobile payments for online shopping, using a browser detection protocol will prevent users from completing transactions through insecure browsers. You can then direct them to make purchases through your app or another approved, secure browser.

Don’t be afraid to offer mobile payments because of fraud – find ways to combat it. By implementing one or more of these tips, you’ll be on your way to protecting your business from mobile fraud and be able to offer customers an easy way to pay for your products and services.