In the retail world, con artists have always attempted to outsmart unsuspecting business owners. If they’re shopping in a store, they may swap one price tag for a lower one or purchase expensive merchandise for a special occasion, wear it and then return it, claiming that they had problems with the item.
Whether your business is brick and mortar or your primary profits come from an online boutique, you may be faced with the growing problem of “cyber shoplifting.” This is a phenomenon where swindlers try to con retailers out of merchandise by making purchases and denying they received them or claiming to send back products that the merchant never receives. If you’ve ever been hit with a bogus return, you know what a hassle it is to deal with the banks and fight the fraud.
The anonymity associated with making purchases online means the Internet retailer takes that payment on good faith. In spite of the challenges of cyber shoplifting, you don’t have to sit back and let it happen to your business. There are safeguards you can put into place to prevent fraud and reduce your chargeback rate.
Make sure your ordering process is clear cut. There should be no “surprise” fees, terms or conditions that would anger a customer. Some merchants may not mention a “service fee” until the order goes through, which frustrates the consumer. An angry customer is more likely to process a chargeback than one who is satisfied and feels that they got exactly what was promised. It’s also more challenging for thieves to claim deceptive chargebacks when your order process is explicitly stated on your site.
Documentation is key. Keeping a paper trail of all transactions can also guard against cyber theft. By documenting every step of a transaction (whether on the Internet or in a store), you can protect your business from fraudulent claims because you have the data to back up purchases. If you have a brick and mortar store, verify that the card information matches the customer’s driver’s license and always obtain a signature. A little prevention goes a long way.
