12 Fraud Touchpoints SMBs Face Online

“Innovation” is a word we hear all the time. Most people associate it with entrepreneurs and business leaders—the women and men who never stop looking for ways to do things better, faster, and more efficiently. But fraudsters are innovators too, always on the lookout for new ways to exploit security flaws for their own gain.  

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12 Fraud Touchpoints SMBs Face Online

Aug 19, 2019

12 Fraud Touchpoints SMBs Face Online

“Innovation” is a word we hear all the time. Most people associate it with entrepreneurs and business leaders—the women and men who never stop looking for ways to do things better, faster, and more efficiently. But fraudsters are innovators too, always on the lookout for new ways to exploit security flaws for their own gain.

In terms of e-commerce, it wasn’t that long ago that the risk of fraud was largely limited to the payment event—that is, when a customer placed items in their electronic shopping cart and payment was made. But now that businesses are increasingly able to follow and interact with customers throughout the customer life cycle, there are many more risk points and vulnerable interactions.

How many?

It depends on your business and how many touchpoints you have with your customers, starting at the point when a visitor begins browsing your web site or engages your app. But most small businesses will have at least a dozen potential fraud touchpoints, including when a customer:

  • creates an account
  • inputs payment information
  • logs in to their account
  • makes a purchase
  • repeats a past order
  • logs in to their loyalty account
  • makes changes to account information
  • downloads your app
  • redeems loyalty rewards
  • leaves an online review
  • purchases a gift card

It’s also important to know that in many cases your business and its customers are most vulnerable when you roll out new products or features. That’s because fraudsters tend to be early adopters, aiming to exploit new products and services before security flaws are found and addressed.

For example, if your business were to issue a press release announcing that customers can now convert loyalty points to gift cards and then give them as gifts, your audience would likely find that appealing. It might also attract the attention of fraudsters, who would aim to take over customer accounts for the purpose of converting stolen loyalty points into gift cards, which they would proceed to sell online.

All that said, it’s imperative that you take measures to protect your business and your customers at all stages of the consumer life cycle, as the risks include lost revenue, chargebacks, and damage to your brand’s reputation.

The good news is that the security tools and techniques available to SMB’s are getting more sophisticated all the time, and there are now cutting-edge solutions—like the fraud protection solution offered by Kount®—that utilize machine learning and artificial intelligence to protect your business.

To learn more about Kount and our suite of security solutions, simply give us a call at 1.888.845.9457. We understand the unique operating environment surrounding SMB’s and can help protect your business while also helping you to capitalize on growth opportunities.    

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