5 Tips Helping Businesses to Avoid Fraud on Black Friday and Cyber Monday

Nowadays, almost every person and business in Europe are aware of the terms Black Friday and Cyber Monday. Consumers in the United Kingdom spent 9.42 billion pounds during the Black Friday weekend in 2021, and its’ popularity is expected to grow year after year. This time period is usually viewed as an opportunity for both businesses and consumers. Is it though?

Opportunity or threat?

There is a saying that most good things come with the risk of something bad. Well, selling on Black Friday and Cyber Monday days is not an exception. The period is well-known for tremendously increased consumer traffic and sales figures. Therefore, it is generally looked at as an opportunity. However, the time period is also known for immensely increased fraudulent payments and fraud rates in general , which begs the question, is Black Friday an opportunity or a threat?

“Consumers in the United Kingdom spent 9.42 billion pounds during the Black Friday weekend in 2021, and these sales figures are expected to rise year after year.”

Fraud during Black Friday and Cyber Monday periods

According to TSB, a quarter of all UK consumers that shop on Black Friday and Cyber Monday have experienced fraud attempts in the past. Some people might wonder why this period attracts so many fraudsters. Well, there is no straightforward answer. However, it can be explained by taking multiple factors into account. 

For starters, fraudsters know that consumer traffic will increase tremendously, which will have impacts on both businesses and consumers themselves. Businesses are expected to be busier than ever, which means that fraudsters have slimmer chances of getting caught. Consumers, on the other hand, are usually less cautious, and can be scammed easier.

“According to TSB and its research, a quarter of all UK consumers that do shopping on Black Friday and Cyber Monday have experienced fraud attempts in the past.”

The most frequent consequence of fraudulent payments is expensive chargebacks by consumers, whose credit/debit cards have been stolen. Such a consequence can cause significant harm to businesses, due to both revenue and product losses. However, most businesses are still risking revenue losses only to be a part of the Black Friday weekend. Surely, the profits are significantly higher than the losses, however, what if businesses could prevent all losses and maximize profits fearlessly?

5 fraud prevention tips for businesses

We’ve compiled 5 tips to help you stay protected during the coming Black Friday weekend and the holiday season that follows.

#1 Alert employees about the upcoming period and encourage caution

Employees are usually the ones that have to deal with payments and order processing, therefore, alerting and encouraging caution could have major results. Sometimes, it only takes a simple reminder of the possibility of fraudulent payments, to make your employees sensitive to details and sceptical towards incoming payments. We have to admit that our minds are set positively before such promising periods, that’s why the need for a friendly reminder cannot be overstated.

Moreover, the increased focus on maximizing order volume during this time period may overshadow employees’ motivation to take initiative and remain vigilant regarding potential fraud attempts.  In such a situation, you could think of a bonus programme for employees who notice and cut off fraudulent payments. 

#2 Look out for suspicious emails, especially ones containing links

It is not a secret that one of the most used fraud channels is email. Fraudsters are known for sending various phishing emails and asking users to click on suspicious links. Once you click the link, fraudsters are able to gain access to your most sensitive data, and they will definitely use it for malicious purposes. Therefore, it is highly recommended to notify all your employees to look out for such emails. 

 #3 Consider implementing multiple solid payment verification methods

It is widely known that fraudulent payments are usually executed via illegally obtained consumer payment information, such as credit/debit card details, resulting in expensive chargebacks for businesses. But Usually, scammers are in possession of consumer credit/debit card details but not their private information. Therefore, we recommend businesses to establish multiple payment verification methods, which will force fraudsters to go through multiple verification processes,making it significantly harder for them to be successful.

#4 Use Machine Learning

Machine Learning is one of the most effective precautionary measures against fraudulent payments. Sometimes businesses have data, which can become highly beneficial during busy periods, such as Black Friday or Cyber Monday. Businesses can use collected data (including fraudulent payments) in their Machine Learning engines, to recognize suspicious settlements and patterns, which could not be detected as easily by humans.

#5 Look for external help (outsource)

Nowadays, payment fraud has become very sophisticated. In many cases, businesses don’t have the necessary capabilities to handle their fraud prevention processes internally. For that reason, Alphacomm has been helping businesses fight fraud and secure their profits for over a decade. Our solution, Protectmax, is a state-of-the-art fraud prevention API, which is capable of detecting and halting fraudulent payments with such incredible accuracy that we’re able to offer merchants a 100% chargeback guarantee. 

By outsourcing your fraud prevention processes, you unburden yourself and your staff from all the headaches and complexities involved in protecting your business from fraudsters. This allows you to focus on what you do best: serving your customers. 

Recommended reading: The Online Fraud Survival Guide

Summary

The Black Friday and Cyber Monday period is an incredible opportunity for both merchants and consumers. However, the risks should not be taken lightly. Both merchants and consumers should take precautionary measures to secure themselves from fraudsters, who are constantly looking for new ways to scam you. 

If you’re interested in protecting your revenue, or finding out whether you could benefit from additional fraud protection, feel free to contact us. Our Profit Boosters are always available to discuss your challenges and provide advice whenever possible.