The success of the recent Black Friday and Cyber Monday weekend is a testament to the opportunity offered by digital commerce. But local entrepreneurs should not underestimate the threat of online fraud, which has the potential to ruin an unsuspecting business. We spoke to Brendan Williamson, CSO at DPO PayGate , about how online business owners can protect themselves against fraud.
The introduction of the 3D Secure authentication security developed by the Card Schemes has lowered the risk for merchants and boosted buyer confidence. However, fraudsters are nothing if not innovative and the growth in online fraud continues unabated.
Financial crime information centre, SABRIC shows that in 2017, lost and stolen credit card fraud saw a 44.5% increase. The centre’s statistics also indicate that credit card related Card Not Present (CNP) fraud is still the leading contributor to gross fraud losses in South Africa. The 2017 numbers show that CNP fraud accounted for 72.9% of the losses on SA issued credit cards.
In an effort to protect the consumer, South African shoppers who report fraudulent transactions can have their money refunded. The bank will draw the money from the merchant’s account to refund the consumer and the merchant will then have to lodge a dispute with the bank if they believe they were not at fault. This chargeback process can be long and complicated. In addition, in many instances, fraud will only be report...